E-Governance Project Lifecycle Participant Handbook-5Day CourseV1 20412 PDF

e-Governance Project Lifecycle
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e-Governance Project Life Cycle

Reading Supplement Handbook
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DISCLAIMER
This publication is a work product of internal knowledge base and compilation of published /
unpublished content from various other sources. National Institute for Smart Governance
(NISG) duly acknowledges the respective sources.
The objective of this document is to provide an overview or preliminary understanding, only,

on the subjects/areas covered as part of the training programme. For undertaking the areas
covered under the training programme, the This document should be treated as only
background quick reference on the topic(s), and should not be treated as a guideline and/or
instructions for undertaking the activities covered under the e-Governance projects. It is
expected to provide useful learning for members working in the area of e-Governance. The
document by no means has any commercial intention and is solely developed for the
purpose of knowledge sharing.
COPYRIGHT
All rights are reserved for this publication. Reproduction and distribution of this publication in
any form without prior written permission of DEIT-GoI/NISG is prohibited. NISG shall have no
liability for errors, omissions or inadequacies in the information contained herein or for
interpretation thereof. The reader is obliged to assume sole responsibility for the selection of
this material, to achieve its intended results.
The content expressed herein is subject to change without notice.
NISG-15-500/CBKM/STeP/04-2012
Printed & Published by
National Institute for Smart Government, www.nisg.org
on behalf of the
Department of Electronics & Information Technology,
Government of India
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How to use this Handbook
This Handbook on e-Governance Project Lifecycle is aimed primarily for the officials in
Government departments who are responsible for or associated with managing the
e-Governance projects in their departments. It is also a unique compendium of information
from diverse sources which will be invaluable to the readers from both IT and non-IT
background as a quick reference guide on various concepts, covered during the training
programme. The Handbook is not intended to be read from cover to cover but to be dipped
into and treated as a reference guide.
This Handbook is organized into 17 sections. Each section presents information for readers
with different levels of technical expertise and differing needs. At the start of each section is
a lay-man’s introduction to the techniques, concepts or processes being covered during the
training. This provides a concise background to the topic then gives an intuitive discussion of
the concepts, objectives and practical importance of the techniques in non-technical
language. These introductions are likely to be all that a decision maker, project manager or
any other officer in charge of the e-Governance Project might need to gain a grasp of the key
issues. For those with greater technical involvement, they provide a clear overview of the
topic and indications of further sections that may be advantageous or necessary to study.
Flow diagrams, tables, graphs & images are used extensively to facilitate easy
comprehension and quick recollection of the topics covered therein. A list of useful links and
references that can be read in conjunction with the topics covered is provided at the end of
the Handbook.
e-Governance as a subject is evolving rapidly but we hope that this handbook provides a
concise, informative and easily used companion for those involved in e-Governance Projects
so that they can use the topics covered under the training to their full advantage.
Feedback from the readers & of this handbook is greatly valued by us.
Please write to us at:

stephelpdesk@nisg.org
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List of Acronyms
ADKAR Awareness, Desire, Knowledge, Ability, Reinforcement
BCA Business Case Analysis
BOO Build Own Operate

BOOT Build Own Operate Transfer
BPR Business Process Re-engineering
CA Certified Authority
CCTNS Crime & Criminal Tracking Network

CDSW Custom Developed Software
CERT Computer Emergency Response Team
CFST Citizen Friendly Services of Transport Department
COTS Commercial off the Shelf
CSC Citizen Service Center
DAR&PG Department of Administrative Reforms & Public Grievances
DFSS Definition for Six Sigma

DISNIC District Information System of National Informatics Center
DIT Department of Information Technology
DMIC Define, Measure, Analyze, Improve, Control

DPR Detailed Project Report
ECV Estimated Contract Value

EOI Expression of Interest
ERP Enterprise Resource Planning
FBS Fixed Budget Selection

G2B Government to Business
G2C Government to Citizen
G2E Government to Employee
G2G Government to Government
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GFR General Financial Rules
GPR Government Process Re-engineering
GPS Global Positioning System
ICR Intelligent Character Recognition

ICT Information & Communication Technology
ILIS Integrated Land Information System
IPR Intellectual Property Right
IRR Internal Rate of Return
ISDN Integrated Services Digital Network
ISS Information System Security

ITAA IT Act Amendment
ITES IT enabled Services
JV Joint Venture
KPI Key Performance Indicator
LAN Local Area Network
LCS Least Cost Selection

LSIP Large Scale Interactive Process
M&E Monitoring & Evaluation

MCA Ministry of Corporate Affairs
MIS Management Information System
MMP Mission Mode Project
MSA Measurement System Analysis

NeGD National e-Governance Division
NeGP National e-Governance Plan
NICNET National Informatics Center Network
NISG National Institute for Smart Government

NLSA National Level Service Agency
NPV Net Present Value
NSDG National Service Delivery Gateway
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OCR Optical Character Recognition
OMR Optical Mark Recognition
PDA Personal Digital Assistant
PeMT Project e-Governance Mission Team

PKI Public Key Infrastructure
PMC Project Management Committee
PMU Project Management Unit
PPP Public Private Partnership
PSC Public Sector Comparator
QBS Quality Based Selection

QCBS Quality & Cost Based Selection
RA Registration Authority
RAO Rapid Application Development

RFID Radio Frequency Identification
RFP Request for Proposal
RFQ Request for Qualification

ROC Registrar of Companies
ROI Return on Investment

SAP Service Access Provider
SAS Software As Service
SDA State Designated Agency
SDC State Data Center

SDLC Software Development Lifecycle
SeMT State e-Governance Mission Team
SLA Service Level Agreement
SLM Service Level Management
SLO Service Level Objective
SMART Simple, Moral, Accountable, Responsive, Transparent

SOA Service Oriented Architecture
SOW Scope of Work
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SP Service Provider
SPV Special Purpose Vehicle
SSDG State e-Governance Service Delivery Gateway
STOC Standards Testing Certification

SWAN State Wide Area Network
TCV Tender Contract Value
UAT User Acceptance Testing
UCID Unique Company Identification Number
UID Unique Identification Number
UNCITRAL United Nations Commission on International Trade Law

VLE Village Level Entrepreneur
WAN Wide Area Network
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Table of Contents
1. Introduction ................................................................................................... 14
2. Introduction to e-Governance .......................................................................... 15
3. Overview of NeGP .......................................................................................... 25
4. e-Governance Project Development Lifecycle .................................................... 41
5. e-Governance Project Development Lifecycle .................................................... 48
6. e-Governance Vision and Strategy .................................................................... 55
7. Government Process Re-engineering (GPR) ...................................................... 70
8. Change Management and Capacity Building in e-Governance Projects ................. 79
9. Business Models for implementation of e-Governance ...................................... 109
10. Public Private Partnership (PPP) ..................................................................... 121
11. Legal and policy framework for e-Governance implementations ........................ 127
12. Procurement in e-Governance ........................................................................ 149
13. Contract Management Aspects ....................................................................... 155
14. Software Development Lifecycle .................................................................... 167
15. Project Management for e-Governance Projects .............................................. 175
16. Monitoring and Evaluation ............................................................................. 180
17. References ................................................................................................... 185
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1. Introduction
1.1. Introduction to the Course
The “e-Governance Project Lifecycle” course is designed to equip participants with the necessary
background and understanding on structured approach for conceptualisation of e-Governance
initiatives, various phases of e-Governance project Lifecycle, key considerations during each
phase of development, activities and outputs of each phase etc. The training course will equip
the participants with a range of emerging practices and examples of how e-Government and
e-business services can be undertaken by government/public sector organizations to strategically
plan and transform their organization to:
 Realign government service delivery with the citizen focus
 Improve transparency, accountability and trust in the government
 Improve the citizen experience in Government transactions, reducing time, costs and
administration burden for government agencies
1.2. Performance Objectives of the Course:

The training course performance objectives in terms of expected capabilities to be demonstrated
by the participants in their respective departments post training completion include the following:
 Support the government departments, in terms of leading or being part of team
responsible for, e-Governance project Conceptulisation and design
 Support the government departments in effectively planning and managing various
phases of e-Governance project development and implementation
 Leverage the strengths of private sector in e-Governance initiatives through effective
procurement approach and manage service delivery throughout project Lifecycle
 Application of learning and good practices in e-Governance projects implementation to
minimise the learning curve and to maximise the benefits for the department
1.3. Knowledge, Skill and Attitude Development Focus in the Course
Following summarises the key Knowledge, Skills and Attitude development focus areas under this
course.
Knowledge
• Need for change in current service delivery model and role of e-Governance
• National e-Governance Plan, MMPs, institutional structures and related policies
• e-Governance evolution model and approach for implementation of e-Governance
• Lifecycle and phases, scope, approach and deliverables in each phase in e-Governance
project development and implementation
• Approach for addressing project requirements during the Lifecycle
• Role for private sector participation.
• Capacities and resources required for e-Governance implementation
• Policy and legislative framework support for e-Governance
Attitude
• Recognise the need for change and transformation in administration
• Appreciate the role of e-Governance and IT in government administration
• Recognise the need for structured and holistic approach for e-Governance
implementation than mere computerization
• Appreciate the private sector participation and potential in government transformation
• Recognise the need for managing the change effectively in the organization
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2. Introduction to e-Governance
In India, the government deals with several matters affecting people’s lives. It is said
government is all encompassing as it touches the lives of human beings from cradle (health
services for women and children) to grave (payment of pensions, gratuity etc.).
Government has to tackle unending problems and challenges emanating from over-population,
poverty, illiteracy, unemployment and underdevelopment.
Government is expected to look after defense, foreign policy, communications and infrastructure,
maintenance of land records, maintenance of law and order, collection of revenue, promotion of
agriculture, science and technology, international trade, banking, insurance, transport, social
welfare, family planning etc.
As citizens of India, we have to deal with government in our day-to-day lives. Citizens expect
speedy service, courteous treatment, and quick disposal of grievances or applications. This
interaction, however, is not always pleasant. The general perception among citizens is that the
quality of administration is deteriorating day-by-day and that quality of governance needs to be
considerably improved upon. The general feeling outside the government is that the government
is huge, it lacks direction, it is unmanageable, is wasteful and it is uncaring of the citizen. But
those in the government continue to feel that they are doing a fine job and nothing could be
done better. There is, therefore, a wide gap between the expectations of the citizens and their
experience with the government. This gap can only be filled by drastic simplification of
procedures and change in attitude of civil servants vis-à-vis the citizens.
Just as business corporations have discovered over the last few
You can’t solve a
decades that information technology can make their service (or
problem on the same
product) delivery value chain more efficient and lead to quality
level that was created.
improvements and cost savings, governments in developing
You have to rise above it
countries, over the last 5-7 years, have discovered that
to the next level.
information technology can make the provision of services to
the citizen more efficient and transparent, can save costs and
This is possible through
lead to a higher level of comfort and satisfaction to the citizens
Innovation…
in dealing with Government.
So far as governments are concerned, the coming together of Albert Einstein
computerization and internet connectivity/web-enablement in
association with process Re-engineering, promises faster and
better processing of information leading to speedier and
qualitatively better decision making, greater reach and accountability, better utilization of
resources and overall good governance. In the case of citizens, it holds the promise of enhanced
access to information and government agencies, efficient service delivery and transparency in
dealings and interactions with government.
With the increasing awareness among citizens about their rights and the resultant increase in
expectations from the government to perform and deliver, the whole paradigm of governance
has changed. Government, today, is expected to be transparent in its dealings, accountable for
its activities and faster in its responses. This has made the use of ICT imperative in any agenda
drawn towards achieving good governance. It has also led to the realization that such
technologies could be used to achieve a wide range of objectives and lead to faster and more
equitable development with a wider reach.
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2.1. Concept and Definition of e-Governance

The “e” in e-Governance stands for ‘electronic’. Thus, e-Governance is basically associated with
carrying out the functions and achieving the results of governance through the utilization of what
has today come to be known as ICT (Information and Communications Technology). The reason
why countries around the world are increasingly opting for ‘e-Governance’ is that governance per
se has become more complex and varied in the last few decades and more importantly, citizens’
expectations from government have increased manifold. ICT facilitates efficient storing and
retrieval of data, instantaneous transmission of information, processing information and data
faster than the earlier manual systems, speeding up governmental processes, taking decisions
expeditiously and judiciously, increasing transparency and enforcing accountability. It also helps
in increasing the reach of government – both geographically and demographically.
The primary purpose of governance is the welfare of citizens. While one aspect of governance
relates to safeguarding the legal rights of all citizens, an equally important aspect is concerned
with ensuring equitable access to public services and the benefits of economic growth to all. It is
expected that e-Governance would enable the government to discharge its functions more
effectively. However, this would require the government to change itself – its processes, its
outlook, laws, rules and regulations and also its way of interacting with the citizens. It would also
require capacity building within the government and creation of general awareness about
e-Governance among the citizens.
During the initial stages of introduction of ICT in governance there was resistance from some
quarters. Some felt that computerization cannot work in the complex government system and
that introduction of computers would lead to un-employment. There were also serious doubts
whether government employees at all levels would be able to handle computers. Fortunately all
these misgivings have proved wrong. Today, new software tools have enough flexibility, to
accommodate the most complex situations. The new technology makes the machine-human
interface very user-friendly. The Information Technology (IT) and Information Technology
Enabled Services (ITES) sectors have created millions of jobs besides improving vastly on the
services provided by government undertakings like Banks, Airlines, Railways, etc. Thus
e-Governance is no longer a far-fetched dream. In fact, for a Government in a country like India -
- with 1.2 billion population, more than 600,000 villages, growing economy coupled with
increasing aspirations of the citizens for better quality of life – use of Information Technology in
improving government processes has not just become vital but essential and without which it
would be extremely difficult, if not impossible, to serve its citizens efficiently and transparently
and ensure participation of larger number of people in decision making at all levels of
Government – Centre, State and local.
e-Governance is, in essence, the application of Information and Communications Technology to
government functioning in order to create ‘Simple, Moral, Accountable, Responsive and
Transparent (SMART) governance. This would generally involve the use of ICTs by government
agencies for any or all of the following reasons:
 Exchange of information with citizens, businesses or other government departments
 Speedier and more efficient delivery of public services
 Improving internal efficiency
 Reducing costs / increasing revenue
 Re-structuring of administrative processes and improving quality of services
“e-Government refers to the use by government agencies of information technologies (such

as Wide Area Networks, the Internet, and mobile computing) that have the ability to
transform relations with citizens, businesses, and other arms of government. These
technologies can serve a variety of different ends: better delivery of government services to
citizens, improved interactions with business and industry, citizen empowerment through
access to information, or more efficient government management. The resulting benefits
can be less corruption, increased transparency, greater convenience, revenue growth,
and/or cost reductions.” – World Bank
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Although the term ‘e-Governance’ has gained currency in recent years, there is no standard
definition of this term. Different governments and organizations define this term to suit their own
aims and objectives. Sometimes, the term ‘e-Government’ is also used instead of ‘e-Governance’.
e-Governance aims to make the interaction between government and citizens (G2C), government
and business enterprises (G2B), and inter-agency relationships (G2G) more friendly, convenient,
transparent, and inexpensive.
The goals of e-Governance are:
 Better service delivery to citizens
 Ushering in transparency and accountability
 Empowering people through information
 Improved efficiency within Governments
 Improve interface with business and industry
e-Governance facilitates interaction between different stake holders in governance using ICT
(indicated by block arrows in the diagram below).
G2G
Central Government
Business
Citizens G2C G2G G2B Civil Societies
NGOs
Local Government
G2G
Interactions between main groups in e-Governance

These interactions may be described as follows:
 G2G (Government to Government) – In this case, Information and Communications
Technology is used not only to restructure the governmental processes involved in the
functioning of government entities but also to increase the flow of information and services
within and between different entities. This kind of interaction is only within the sphere of
government and can be both horizontal i.e. between different government agencies as well
as between different functional areas within an organization, or vertical i.e. between national,
provincial and local government agencies as well as between different levels within an
organization. The primary objective is to increase efficiency, performance and output.
 G2C (Government to Citizens) – In this case, an interface is created between the
government and citizens which enables the citizens to benefit from efficient delivery of a
large range of public services. This expands the availability and accessibility of public services
on the one hand and improves the quality of services on the other. It gives citizens the
choice of when to interact with the government (e.g. 24 hours a day, 7 days a week), from
where to interact with the government (e.g. service centre, unattended kiosk or from one’s
home/workplace) and how to interact with the government (e.g. through internet, fax,
telephone, email, face-to-face, etc). The primary purpose is to make government, citizen-
friendly.
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 G2B (Government to Business) – Here, e-Governance tools are used to aid the business
community – providers of goods and services – to seamlessly interact with the government.
The objective is to cut red tape, save time, reduce operational costs and to create a more
transparent business environment when dealing with the government. The G2B initiatives can
be transactional, such as in licensing, permits, procurement and revenue collection. They can
also be promotional and facilitative, such as in trade, tourism and investment. These
measures help to provide a congenial environment to businesses to enable them to perform
more efficiently.
 G2E (Government to Employees) – Government is by far the biggest employer and like
any organization, it has to interact with its employees on a regular basis. This interaction is a
two-way process between the organization and the employee. Use of ICT tools helps in
making these interactions fast and efficient on the one hand and increase satisfaction levels
of employees on the other.
2.2. Benefits / Outcomes of e-Governance

e-Governance is about reforms in governance, facilitated by the creative use of Information and
Communications Technology. The following can therefore be achieved as a result of
e-Governance:
 Better access to information and quality services for citizens: ICT would make
available timely and reliable information on various aspects of governance. In the initial
phase, information would be made available with respect to simple aspects of governance
such as forms, laws, rules, procedures etc later extending to detailed information including
reports (including performance reports), public database, decision making processes etc. As
regards services, there would be an immediate impact in terms of savings in time, effort and
money, resulting from online and one-point accessibility of public services backed up by
automation of back end processes. The ultimate objective of e-Governance is to reach out to
citizens by adopting a Lifecycle approach i.e. providing public services to citizens which would
be required right from birth to death.
 Simplicity, efficiency and accountability in the government: Application of ICT to
governance combined with detailed business process Re-engineering would lead to
simplification of complicated processes, weeding out of redundant processes, simplification in
structures and changes in statutes and regulations. The end result would be simplification of
the functioning of government, enhanced decision making abilities and increased efficiency
across government – all contributing to an overall environment of a more accountable
government machinery. This, in turn, would result in enhanced productivity and efficiency in
all sectors.
 Expanded reach of governance: Rapid growth of communications technology and its
adoption in governance would help in bringing government machinery to the doorsteps of the
citizens. Expansion of telephone network, rapid strides in mobile telephony, spread of
internet and strengthening of other communications infrastructure would facilitate delivery of
a large number of services provided by the government. This enhancement of the reach of
government – both spatial and demographic – would also enable better participation of
citizens in the process of governance.
 Enabling Environment for Promoting Economic development - Technology enables
governments to create positive business climates by simplifying relationships with businesses
and reducing the administrative steps needed to comply with regulatory obligations. There is
a direct impact on the economy, as in the case of e-procurement, which creates wider
competition and more participants in the public sector marketplace.
 Enhancing Transparency and Accountability: e-Governance helps to increase the
transparency of decision-making processes by making information accessible - publishing
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government debates and minutes, budgets and expenditure statements, outcomes and
rationales for key decisions, and in some cases, allowing the on-line tracking of applications
on the web by the public and press.
 Improving Service Delivery: Government service delivery, in the traditional process, is
time consuming, lacks transparency, and leads to citizen and business dissatisfaction. By
putting government services online, e-Governance reduces bureaucracy and enhances the
quality of services in terms of time, content and accessibility through integrated service
delivery platforms at the door steps of citizen.
Need to move from Government-Centric to Citizen-

Centric Governance
Government to provide integrated services using e-Gov
 Improving Public Administration- e-Governance administrative components, such as a

computerized treasury, integrated financial management information systems, and human
resource management systems, lead to greater efficiency in public administration. Features
include the integration of expenditure and receipt data, control of expenditure, human
resources management, intelligent audit through data analysis and the publishing of financial
data.
2.3. e-Governance Maturity Model
In order to guide and benchmark e-Governance development, various e-Governance
development models, so called maturity models have been developed. These models outline
various stages for e-Government development.
Most widely accepted among these models is the “Gartner e-Governance Maturity Model”.
The maturity model, comprises of ‘four’ phases, viz. Information, interaction, transaction and
transformation. In each of the four phases, the delivery of online services and use of ICTs in
government operations serve one or more of the aspects of e-Governance: democracy,
government, business.
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Increasing value for

Citizens/ Businesses
Phase IV
Transformation
Phase III
Transaction
Phase II
Interaction
Phase I
Information
Increasing complexity
e-Governance Maturity Model (Gartner, 2000)

A brief description of each of the phases is as follows:
Information: In the first phase e-Governance means being present on the web, providing the
external public (G2C and G2B) with relevant information. The value to the public is that
government information is publicly accessible; processes are described and thus become more
transparent, which improves democracy and service.
Internally (G2G) the government can also disseminate information with static electronic means,
such as the Internet. In this phase it is all about information.
Interaction: In the second phase the interaction between government and the public (G2C and
G2B) is stimulated with various applications. People can ask questions via e-mail, use search
engines for information and are able to download all sorts of forms and documents. These
functionalities save time. In fact the complete intake of (simple) applications can be done online
24/7. Normally this would have only been possible at a counter during opening hours.
Internally (G2G) government organizations use Local Area Networks (LAN), intranets and e-mail
to communicate and exchange data. The bottom line is that more efficiency and effectiveness is
achieved because a large part of the intake process is done online. However, you still have to go
to the office to finalize the transaction, by paying a fee, handing over evidence or signing papers.
Transaction: With phase three the complexity of the technology is increasing, but customer
(G2C and G2B) value will also be higher. Complete transactions can be done without going to an
office. Examples of online services are filing income tax, filing property tax, extending/renewal of
licenses, visa and passports and online voting. Phase three is mainly complex because of security
and personalization issues – e.g., digital (electronic) signatures are necessary to enable legal
transfer of services. In this phase, internal (G2G) processes have to be redesigned to provide
good service. Government needs to create new laws and legislation that will enable paperless
transactions with legal certification. The bottom line is that now the complete process is online,
including payments, digital signatures etc. This saves time, paper and money.
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Transformation: The fourth phase is the transformation phase in which all information systems
are integrated and the public can get G2C and G2B services at one (virtual) counter. One single
point of contact for all services is the ultimate goal. The complex aspect in reaching this goal is
mainly on the internal side, e.g. the necessity to drastically change culture, processes and
responsibilities within the government institution (G2G). Government employees in different
departments have to work together in a smooth and seamless way. In this phase cost savings,
efficiency and customer satisfaction are reaching highest possible levels.
The UN e-Governance Survey 2008 report has taken this model a step further and
introduced, as fifth phase, the concept of ‘Connected Government’, which means
Governments transform themselves into a connected entity that responds to the needs of its
citizens by developing an integrated back office infrastructure. This is characterized by:
1. Horizontal connections (among government agencies)
2. Vertical connections (central and local government agencies)
3. Infrastructure connections (interoperability issues)
4. Connections between governments and citizens
5. Connections among stakeholders (government, private sector, academic institutions, NGOs
and civil society)
2.4. Evolution of e-Governance in India
Recognizing the increasing importance of electronics, the Government of India established the
Department of Electronics in 1970. The subsequent establishment of the National Informatics
Centre (NIC) in 1977 was the first major step towards e-Governance in India as it brought
‘information’ and its communication in focus. In the early 1980s, use of computers was confined
to very few organizations. The advent of personal computers brought the storage, retrieval and
processing capacities of computers to Government offices. By the late 1980s, a large number of
government officers had computers but they were mostly used for ‘word processing’. Gradually,
with the introduction of better software, computers were put to other uses like managing
databases and processing information. Advances in communications technology further improved
the versatility and reach of computers, and many Government departments started using ICT for
a number of applications like tracking movement of papers and files, monitoring of development
programmes, processing of employees’ pay rolls, generation of reports etc.
However, the main thrust for e-Governance was provided by the launching of NICNET in 1987 –
the national satellite-based computer network. This was followed by the launch of the District
Information System of the National Informatics Centre (DISNIC) programme to computerize all
district offices in the country for which free hardware and software was offered to the State
Governments. NICNET was extended via the State capitals to all district headquarters by 1990.
In the ensuing years, with ongoing computerization, tele-connectivity and internet connectivity,
came a large number of e-Governance initiatives, both at the Union and State levels. A National
Task Force on Information Technology and Software Development was constituted in May 1998,
while recognizing Information Technology as a frontier area of knowledge per se, it focused on
utilizing it as an enabling tool for assimilating and processing all other spheres of knowledge. It
recommended the launching of an ‘Operation Knowledge’ aimed at universalizing computer
literacy and spreading the use of computers and IT in education. In 1999, the Union Ministry of
Information Technology was created. By 2000, a 12-point minimum agenda for
e-Governance was identified by Government of India for implementation in all the Union
Government Ministries/Departments. Some of the important agenda points included the following
actions to be taken by the Ministries / Departments:
a. Each Ministry/Department must provide PCs with necessary software up to the Section
Officer level. In addition, Local Area Network (LAN) must also be set up.
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b. It should be ensured that all staff who have access to and need to use computer for their
office work are provided with adequate training. To facilitate this, inter alia,
Ministries/Departments should set up their own or share other’s Learning Centres for
decentralized training in computers as per the guidelines issued by the MIT.
c. Each Ministry/Department should start using the Office Procedure Automation software
developed by NIC with a view to keeping a record of receipt of dak, issue of letters, as well
as movement of files in the department.
d. Pay roll accounting and other house-keeping software should be put to use in day-to-day
operations.
These initiatives / actions though served an important purpose in introducing ICTs in Government
but fell far short of expectations because the approach was still Departmental and not Citizen-
centric. Citizens did not benefit much as they still were supposed to physically go to each
Department (or its associated office) to avail the service. Second, there was no integration of
information within and among departments. This resulted in creation of silos of information.
Third, from a government perspective, there was huge duplicity of effort and wastage of precious
resources in creation of overlapping infrastructure by each Department / Ministry at the Central
and State level.
Prior to 2006 when the Government of India formally launched its National e-Governance Plan
(NeGP), which is discussed in subsequent chapter of this book, some Departments of
Government of India as well as State Governments had initiated steps to adopt e-Governance. In
this context it would be useful to highlight some of the important e-Governance initiatives
implemented by the Union and State Governments in the last 10 to 15 years.
2.5. Pioneering e-Governance initiatives in India
The e-Governance scenario in India has come a long way since computers were first introduced.
The focus now is on extending the reach of governance to have a major impact on the people at
large. A large number of initiatives have been taken in this category by the Union and the State
Governments. Some of these are described in the following paragraphs.
Bhoomi Project ( Karnataka) : Online Delivery of Land Records
Bhoomi is a self-sustainable e-Governance project for the computerized delivery of 20 million
rural land records to 6.7 million farmers through 177 Government-owned kiosks in the State of
Karnataka. It was felt that rural land records are central conduits to delivering better IT-enabled
services to citizens because they contain multiple data elements: ownership, tenancy, loans,
nature of title, irrigation details, crops grown etc. In addition to providing the proof of title to the
land, this land record is used by the farmer for a variety of purposes: from documenting crop
loans and legal actions, to securing scholarships for school-children. These records were hitherto
maintained manually by 9,000 village officials. Through this project, computerised kiosks are
currently offering farmers two critical services - procurement of land records and requests for
changes to land title. About 20 million records are now being legally maintained in the digital
format. To ensure authenticity of data management, a biometric finger authentication system has
been used for the first time in an e-Governance project in India. To make the project self-
sustaining and expandable, Bhoomi levies user charges.
The Bhoomi project is a noteworthy effort and sets an example for other projects in its approach
towards piloting a project, as well as its rolling out and sustenance. It may be mentioned here
that manually written Records of Right, Tenancy and Cultivation (RTC) have been declared
illegal. The key lessons learned from Bhoomi project can be summarised as follows:
a. A well conceptualized and executed BPR is a pre-requisite for success of
e-Governance projects.
b. There should be end-to-end computerization.
22
c. Large e-Governance projects, having large scale impact require total support at the
political level.
d. Continuity in the Project Management team helps in proper implementation of
e. If benefits to citizens are real and substantial, projects become sustainable.
f. A holistic approach is necessary for e-Governance. Adequate time and resources
need to be devoted in conceptualization, implementation and maintenance of
projects.
g. Systems should have a strong back-up mechanism.
eSeva (Andhra Pradesh): Front-end Citizen Service Delivery
This project is designed to provide ‘Government to Citizen’ and ‘e-Business to Citizen’ services.
Originally, it was implemented in the form of the TWINS (Twin Cities Integrated Network
Services) project in 1999 in the twin cities of Hyderabad and Secunderabad. The highlight of the
eSeva project is that all the services are delivered online to consumers /citizens by connecting
them to the respective government departments and providing online information at the point of
service delivery. The network architecture is designed as an Intranet on a Wide Area Network
(WAN). The network is designed in three tiers, each tier being physically located in different
places. The first tier for the client-end is located at the eSeva centres. The second tier consists of
the data servers and the application servers. The third tier comprises Departmental servers as
the backend in the concerned departments (Electricity, Municipality, Passport Office, Transport
Department, Registration, Commercial Tax, etc). These servers keep consolidated databases.
Presently, eSeva is providing ‘One-stop-shop’ for over 66 G2Cand B2Cservices in 46 eSeva
centres in the twin cities and Ranga Reddy district. Centres have also been opened in 20 other
districts. The services include online payment of utility bills, issuing certificates, issuing licenses &
permits, e-forms etc. Payments can be made by cash/cheque/DD/credit card/Internet
The project has become very popular among the citizens especially for payment of utility bills.
This project exemplifies the potential for integration of delivery of Union, State and Local
Government services at one point
The key lessons learnt from eSeva Project are:

i. Support from the highest political level helps in overcoming problems in implementation.
ii. Convergence and coordination between the activities of different
departments/organizations leads to better services under e-Governance.
iii. Long-term sustainability of e-Governance projects depends on financial viability,
especially if they are to be implemented in the PPP mode.
iv. Front end e-services are possible without back end computerization. e-Governance
projects could be broken into various components and their computerization could then
be phased according to the ease of implementation.
v. Government servants need to be motivated to adapt and work in an ICT environment.
KHAJANE (Karnataka): End-to-end automation of Government Treasury System
‘KHAJANE’ is a major government-to-government (G2G) e-Governance initiative of the Karnataka
State Government. It has been implemented mainly to eliminate systemic deficiencies in the
manual treasury system and for the efficient management of state finances. It involves end-to-
23
end process Re-engineering -- from the time of approval of the state budget to the point of
rendering accounts to the government.
There are 216 treasuries functioning across the state. The treasuries in the state disburses
salaries to about 7 lakh government and grant-in-aid employees, services 4.3 lakh pensioners
and 15.7 lakh social security pensioners. From 228 departments, 21,000 drawing officers draw
money for 2117 schemes from the treasuries in the state. The treasuries handle about Rs 36,000
crore of receipts and Rs 46,000 crore of payments annually. In addition to state government
transactions, the treasuries also handle the zilla panchayat and taluk panchayat transactions,
which is unique in the country.
Before computerization, in the manual treasury system, owing to ever increasing volume of
transactions, certain systemic deficiencies had crept in that resulted in (i) Over-withdrawal of
funds, (ii) Fraudulent withdrawal of funds, (iii) Misclassification of expenditure, and (iv) Non-
reconciliation, delay in submission of accounts and settling claims.
The application software ‘KHAJANE’ is modular in nature and covers the entire treasury activity.
‘KHAJANE’ includes following modules: Receipts, Payments, Deposits, Stamps and Strong Room,
Pensions, Social Security Pensions, Accounts, Returns, House Keeping and Master Maintenance.
The key features of the system include:
 Validation of the bill against the budget availability, requirements regarding the
provisions of financial code and treasury code, and manual of contingent expenditure.
 Validation and the genuineness of the drawing officer, his or her authority to draw the
money for the scheme and whether it is within his financial powers.
 Validates the budget availability. If the system raises any objection, the treasury officer
has no discretion to overrule it. With these system validations, the compliance and strict
adherence to the provisions of various codes is ensured.
The state disburses about 15.7 lakh social security pensions like old-age pension/physically
handicap pension/destitute widow pension every month across the state. With automation of
treasuries, the printing of this voluminous number of money orders have been de-centralized up
to the sub-treasury level. Now the money orders are printed at the sub-treasury level and
disbursed to pensioners during the first week of every month.
Key learnings of the project include:
1. Thorough Analysis, Clear Focus, Well Defined Objectives
2. Involvement of Senior Officials and Close Monitoring
3. Process Re-engineering
4. Change Management and Extensive Capacity Building
5. Appropriate Government Orders and Manual to Support the New System
6. Careful Selection of Implementation Partners
7. Proper Documentation
8. User Friendly Software and Modular Approach
9. Extensive Testing and Continuity of Team during Implementation
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3. Overview of NeGP
3.1. Emergence of National e-Governance Plan (NeGP)
During the 1980s and early 1990s initial attempts towards e-Governance were made basically
focusing towards networking government departments and developing in-house government
applications in the areas of defence, economic monitoring, planning and the deployment of IT to
manage data-intensive functions related to elections, census, tax administration etc. These
applications focused on automation of internal government functions rather than on improving
service delivery to citizens.
Highlighting this concern, Dr. APJ Abdul Kalam, former President of India and a visionary in the
field of e-Governance, in his Inaugural address at IIT Delhi during International Conference on
e-Governance, 18th December, 2003 has aptly summarized the basic challenge lying before the
country in this regard:
“e-Governance has to be citizen-friendly. Delivery of services to citizens is considered a primary
function of the government. In a democratic nation of over one billion people like India,
e-Governance should enable seamless access to information and seamless flow of information
across the state and central government in the federal set up. No country has so far
implemented an e-Governance system for one billion people. It is a big challenge
before us.”
In recent years, in many forums, the Government of India has indicated their commitment to
provide efficient and transparent government to all strata of society. e-Governance is now seen
as a key element of the country’s governance and administrative reform agenda. The
Government of India aspires to provide:
 Governance that is easily understood by and accountable to the citizens, open to
democratic involvement and scrutiny (an open and transparent government).
 Citizen-centric governance that will cover all of its services and respect everyone as
individuals by providing personalised services.
 An effective government that delivers maximum value for taxpayers’ money (quick and
efficient services)
Hence the Government of India views e-Governance as a vehicle to initiate and sustain reforms
by focusing on three broad areas like Public services, Management and Governance.
The incumbent Union Government’s National Common Minimum Programme also accords priority
to improving the quality of basic governance and in that context proposes to promote
e-Governance on a massive scale in areas of concern to the common man.
Experiences from successes as well as the failures of the various initiatives played an important
role in shaping the e-Governance strategy of the country. A need was therefore felt for taking a
holistic view of several e-Governance initiatives to be implemented across the country. It was
increasingly perceived that if e-Governance was to be expedited across the various arms and
levels of Government, a programme approach would need to be adopted, which must be guided
by a common vision, strategy and approach. This approach would have the added advantage of
enabling huge savings in cost, in terms of sharing the core and support infrastructure, enable
interoperability through standards etc, which would result in the citizen having a seamless view
of Government.
The National e-Governance Plan (NeGP) has been formulated by the Department of Information
Technology (DIT) and Department of Administrative Reforms & Public Grievances (DAR&PG). The
Union Government approved the National e-Governance Plan (NeGP), comprising of 27 Mission
Mode Projects (MMPs) and 8 components on May 18, 2006.
25
The Government has accorded approval to the vision, approach, strategy, key components and
implementation framework for the NeGP.
3.2. Vision
NeGP, with the aim of improving delivery of Government services to citizens and businesses, is
guided by the following vision:
Make all Government services accessible to the common man in his

locality, through common service delivery outlets and ensure efficiency,
transparency & reliability of such services at affordable costs to realise
the basic needs of the common man.”
As can be observed, the vision statement clearly underlines the priorities of the Government in
fostering good governance. These are:
 Accessibility: The vision has been designed keeping the rural population in mind. The need
is to reach those sections of the society which have remained tangential to the government
sphere due to various reasons like geographical challenges and lack of awareness. NeGP has
a provision for SWAN to connect all the government offices upto the block level and CSCs for
accessing the citizens from the rural areas.
 Common Service Delivery Outlets: At present citizens, especially those living in remote
rural areas have to travel long distances (at times even 100 kms or more) on bumpy roads
more than once to avail a service through a government Department or its local office. This
process is not just time-consuming and painful but also prohibitively costly for a ordinary
citizen, who has to think twice before going to a Government office. To overcome this
problem, as a part of the NeGP’s Vision , one Common Service Centre (CSC) is envisaged to
opened for every six villages so that easily avail these services and that too with comfort and
convenience. These CSCs will offer online Integrated Service Delivery on ‘Anytime,
Anywhere’ basis. Moreover, employment opportunities for entrepreneurs would be
generated through the establishment of Common Service Centres in rural areas.
 Adopting e-Governance for improving the Governance: The use of ICT will enable
government to reach citizens thereby improving governance. This will also enable
improvement in monitoring and implementing of various government schemes thereby
increasing the accountability and transparency in government.
 Improve the quality of life of citizens: e-Governance would help in attaining this
objective through the provision of citizen centric service delivery thereby providing better
turnaround times and convenience in demanding and availing services.
Hence, the vision is to use e-Governance as the route for governments to strengthen good
governance. All services provided through the various e-Government initiatives are expected
to assist the governments at the Central and State levels in reaching the yet ‘unreached’ and
enable involvement and empowerment of marginalized groups through their participation in
the government processes thereby contributing towards poverty reduction and bridging the
sharp social and economic divide.
3.3. NeGP: Key Stakeholders
In order to ensure that numerous projects being implemented by the Union and State
Government departments are consistent with a broad policy and adhere to common standards,
the NeGP established a well defines institutional structure. Since the implementation of
e-Governance is a highly complex process and to promote e-Governance on a massive scale
requires proper monitoring and control, it becomes essential to have an empowered institutional
26
arrangement to oversee, drive and manage implementation. The arrangements may vary at
different levels but there should be consistency of key roles i.e. formulating and ensuring uniform
policies and standards, addressing implementation bottlenecks and monitoring progress and
desired outcomes. To ensure this at the national level, NeGP has established well-defined
institutional structure as depicted below:
The roles and responsibilities of various stakeholders involved in implementation of NeGP are as
follows:
 Apex Body (headed by the Prime Minister): A body under the chairpersonship of the
Prime Minister has been constituted with representation drawn from relevant ministries/
departments, the National Knowledge Commission, the Planning Commission, experts, etc.
basically to provide leadership to the NeGP; prescribe deliverables and milestones; and
monitor periodically the implementation of NeGP.
 National e-Governance Advisory Board, headed by the Minister of Communication &
Information Technology has been created, to solicit views of external stakeholders and to
provide inputs to the CCEA, advise the government on policy issues and strategic
interventions necessary for accelerating introduction of e-Governance across central line
ministries and state government departments. The Advisory Group also includes
representative from the Planning Commission and 3 to 4 representatives from States/UTs
and other line ministries/departments on a rotational basis.
 Apex Committee (NeGP): with Cabinet Secretary as its Chairman and Secretary, DIT as its
Member Convener has been constituted to oversee the NeGP programme and provides policy
and strategic directions for its implementation, resolves inter-ministerial issues; moderates
and drives services, process Re-engineering and service levels of each MMP, wherever
required.
 Line Ministries/Departments: are responsible for the implementation of the assigned
Mission Mode Projects (MMPs)/Components. Mission Mode Projects are owned and
spearheaded by various line ministries for central government, state governments and
Integrated projects. The Line ministries/ Departments basically takes ownership of the MMP
and conceptualize the project by fixing the objectives, hold consultations with all the
stakeholders, prepare comprehensive Project Document including identification of e- services
and service levels, obtain sanction for schemes, and implement the project and its various
components.
27
 State Governments/UT Administrations: Responsible for implementing State Sector

MMPs, under the overall guidance of the respective Line Ministries in cases where central
assistance is also required. An Apex Committee at the State level headed by the Chief
Secretary is constituted to implement the projects.
 Department of Information Technology (DIT) including National Informatics
Centre (NIC): DIT serves as a secretariat to the Apex Committee and assists it in managing
the NeGP projects. DIT assists National e-Governance Advisory Group and Prime Minister’s
Office; facilitates implementation of NeGP by various Ministries and State Governments;
carries out technical appraisal of all NeGP projects; prepares suitable template(s) for
preparing project document(s) (e.g. detailed project report), for use by individual
departments; provides technical assistance to various Ministries and State Governments
either directly or through NIC or in collaboration with external professional Consultants;
undertakes monitoring of all the MMPs.
3.3.1. Other Key Stakeholders
 Planning Commission and Ministry of Finance: Allocate funds for NeGP through Plan
and Non-plan budgetary provisions and lay down appropriate procedures in this regard.
 Department of Administrative Reforms & Public Grievances (DAR&PG): Responsible
for generic Process Re-engineering and Change Management, which are desired to be
realised across all Government departments. However, concerned Line Ministries /
Implementing Agencies are primarily responsible for carrying out the required Process
Re-engineering and Change Management; promoting initiatives for Human Resource
Development, and training and awareness building.
 Standardization, Testing, Quality and Certification (STQC) Directorate has established
itself as a premier organization for Quality Assurance in the field of Electronics and
Information Technology (IT) in the country. It provides Testing, Calibration, Training and
Certification services through its network of test laboratories spread across the country
 Centre for Development of Advanced Computing (C-DAC), is primarily an R & D
institution involved in the design, development and deployment of advanced Information
Technology (IT) based solutions. CDAC is assisting DIT in in taking major initiatives in this
area of e-Governance offering solutions and services.
 The Controller of Certifying Authorities (CCA) aims at promoting e-Governance through
the wide use of digital signatures
 National Institute for Smart Government (NISG) provides consulting and
implementation support to both Central and State Government. NISG undertakes diversity of
activities viz. preparing e-Governance Road Maps; conceptualizing large IT infrastructure
projects; preparing framework, guidelines; developing business models and monitoring &
evaluation frameworks, designing architectures and developing standards. Apart from
playing a strategic advisory role, NISG also supports central and state governments to
improve the delivery of government services, design IT systems to enhance internal
efficiencies. A very important task of NISG is to help in nation wide capacity building under
NeGP to develop leadership capability and skill-sets within the government for implementing
e-Governance Projects. NISG has also helped set up the NeGD for the NeGP.
3.4. Implementation Strategy for e-Governance
Implementation of e-Governance is a highly complex process requiring provisioning of hardware
and software, networking, process Re-engineering and change management. In the past, it is
been observed that number of e-Governance projects have been undertaken through individual
initiatives; some of them have succeeded while some have not produced the desired results or
withstood the test of time. A prudent approach, therefore, is proposed for the NeGP, which is
28
based on lessons learnt from the past and experiences from successful e-Governance applications
that have been implemented nationally and internationally. The approach and methodology
adopted for NeGP contains the following elements:
 Common Support Infrastructure: NeGP implementation involves setting up of common
and support IT infrastructure such as: State Wide Area Networks (SWANs), State Data
Centres (SDCs), Common Services Centres (CSCs) and Electronic Service Delivery Gateways.
 Governance: Suitable arrangements for monitoring and coordinating the implementation of
NeGP under the direction of the competent authorities have been set up. The programme
also involves evolving/ laying down standards and policy guidelines, providing technical
support, undertaking capacity building, R&D, etc. DIT strengthens itself and various
institutions like NIC, STQC, CDAC, NISG, etc., to play these roles effectively.
 Centralized Initiative, Decentralized Implementation: e-Governance is being
promoted through a centralised initiative to the extent necessary to ensure citizen-centric
orientation, to realise the objective of inter-operability of various e-Governance applications
and to ensure optimal utilisation of ICT infrastructure and resources while allowing for a
decentralised implementation model. It also aims at identifying successful projects and
replicating them with required customisation wherever needed.
 Public-Private Partnerships (PPP) model is to be adopted wherever feasible to enlarge
the resource pool without compromising on the security aspects.
 Integrative Elements: Adoption of unique identification codes for citizens, businesses and
property is to be promoted to facilitate integration and avoid ambiguity.
 Programme Approach at the National and State levels: For implementation of the
NeGP, various Union Ministries/Departments and State Governments are involved.
Considering the multiplicity of agencies involved and the need for overall aggregation and
integration at the national level, NeGP is being implemented as a programme, with well
defined roles and responsibilities of each agency involved. For facilitating this, appropriate
programme management structures have also been put in place.
 Facilitating role of DIT: DIT is the facilitator and catalyst for the implementation of NeGP
by various Ministries and State Governments and also provides technical assistance. It serves
as a secretariat to the Apex Committee and assists it in managing the programme. In
addition, DIT is also implementing pilot/ infrastructure/ technical/ special projects and
support components. DAR&PG’s responsibility is towards Government Process Re-engineering
and Change Management, which are desired to be realised across all government
departments. Planning Commission and Ministry of Finance allocate funds for NeGP through
Plan and Non-plan budgetary provisions and lay down appropriate procedures in this regard.
 Ownership of Ministries: Under the NeGP, various MMPs are owned and spearheaded by
the concerned line Ministries. In case there are any ongoing projects which fall in the MMP
category, they would be suitably enhanced to align them with the objectives of NeGP. For
major projects like Bharat Nirman, Rural Employment Guarantee Schemes etc., the line
ministries concerned are advised to make use of e-Governance as also automation
techniques from the inception stage. States have been given the flexibility to identify a few
additional state-specific projects, which are relevant for the economic development of the
State.
29
3.5. Mission Mode Projects (MMPs)

The following is the list of MMPs at central, State and at Integrated level . Some of the MMPs are
in advanced stages of implementation, while some are in the conceptualization stage.
Line Ministry /Dept

No Projects Project Brief
Responsible
Mission Mode Projects - Central Sector
1. Passport Ministry of External The Passport Seva Project was launched by the
Affairs/Ministry of Ministry of External Affairs with the objective of
Home Affairs delivering Passport Services to the citizens in a
comfortable environment with wider accessibility
and reliability..
Various e-services being offered under the MMP
include issue / re-issue of Passport, issue of
duplicate Passport, issue of Tatkal Passport,
change in name, address, ECNR/ ECR
suspensions, passport status enquiry etc.
2. Visa & Ministry of External In order to Modernize and upgrade the
Immigration Affairs/Ministry of Immigration services, “Immigration, Visa and
Home Affairs Foreigners Registration & Tracking (IVFRT)” has
been identified and included as one of the MMPs
to be undertaken by the Ministry of Home Affairs
under the National e-Governance Plan (NeGP).
The core objective of this Project is to develop
and implement a secure and integrated service
delivery framework that facilitates legitimate
travelers while strengthening security.
3. MCA21 Ministry of Corporate The projects aims to provide electronic services
Affairs to the Companies registered under the
Companies Act.
Various online facilities offered includes allocation
and change of name, incorporation, online
payment of registration charges, change in
address of registered office, viewing of public
records and other related services.
4. Insurance Department of MMP aims at facilitating customer services,
Banking automating grievance redressal mechanism and,
creating a holistic database of insurance users.
5. Income Tax Ministry of Various important e-services being offered under
Finance/Central Board this MMP includes facility for downloading of
of Direct Taxes various forms, online submission of applications
for PAN and TAN, query-based services for
allotment of PAN and TAN, e-filing of Income Tax
Returns, e-filing of TDS returns, online payment
of Taxes, issue of refunds through Electronic
Clearance Scheme (ECS) and Refund Banker, etc.
6. National Citizen Ministry of Home This MMP aims towards creating a Central
Database/UID Affairs/Registrar database of resident information and assign a
General of India Unique Identification number to each such
30
Line Ministry /Dept

Responsible
(RGI)/ Planning resident in the country, to facilitate efficient
Commission delivery of social and welfare services.
7. Central Excise Department of This MMP aims towards facilitating availability of
Revenue/Central e-services related to indirect taxation for
Board of Excise & industry, importers and exporters, inbound
Customs travellers etc. Various important e-services being
offered include e-filing of Import and Export
documentation, electronic processing of
declarations, facilities for e-filing of Central Excise
and Service Tax returns, e-registration services,
digital signatures, e-payment of Customs Duties
etc.
8. Pensions Department of This MMP provides updated information on
Pensions & Pensioners government pension rules and regulations; helps
Welfare and facilitating registration of pensioners’ grievances;
Department of enables monitoring timely sanction of
Expenditure pension/gratuity; maintains a database of
Pensioners and providing links to the websites of
the Directorates of Pensions and the AGs of
various States.
9. Banking Department of This MMP aims towards streamlining various e-
Banking services initiatives undertaken by individual
banks.
10. e-Office Department of This MMP aims at significantly improving the
Administrative operational efficiency of the Government by
Reforms & Public transitioning to a "Less Paper Office".
Grievances
Mission Mode Projects - State Sector
1. Land Records Ministry of Rural The project – National Land Records
Development Modernization Programme (NLRMP) aims towards
providing integrated land related information and
services to citizens.
Various online services provided are issue of
copies of RORs, crop; irrigation details, filing and
tracking of mutation cases, availability and
submission of forms
2. Road Transport Ministry of Road The project aims to induct technology in
Transport & Highways transport offices across India to offer vehicle
registration, driving licenses and Smart Card
based RCs (Registration Certificates) to citizens.
3. Agriculture Department of The MMP aims at providing information regarding
Agriculture & farm practices, market trends, agricultural and
Cooperation technical know-how, providing online certification
/ licenses to wholesalers and retails dealing in
pesticides, fertilizers etc. and other related
services to the farming community.
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Line Ministry /Dept

Responsible
4. Treasuries Ministry of Finance This MMP aims at computerisation of treasuries
involving common set of standards for seamless
integration of participating agencies.
5. Municipalities Ministry of Urban The MMP aims at providing various services
Employment and offered by Urban Local Bodies (ULBs) to
Poverty Alleviation residents electronically.
6. Gram Ministry of Panchayati The MMP aims at improving governance at the
Panchayats Raj grass roots and providing various e-services at
the Panchayat level.
7. Commercial Ministry of Finance The MMP, which aims at providing electronic
Taxes services to commercial taxes payers, is being
formulated.
8. Police (CCTNS) Ministry of Home The Mission Mode Project of the Police – Crime
Affairs and Criminal Tracking Network System (CCTNS) -
- is aimed at facilitating the process of civil
policing and law enforcement by utilizing ICT
effectively. Among many other services, it will
allow citizens to register and track an online
complaint.
9. Employment Ministry of Labour & This MMP of the Ministry of Labour aims at
Exchanges Employment providing e-services to employment seekers and
employers.
10. E District Department of The MMP aims at delivery of high volume,
Information citizen-centric services at the District level such
Technology as issue of birth/death certificate, income and
caste certificate, old age and widow pension etc.
Mission Mode Projects - Integrated Category
1. EDI (e- Ministry of Commerce The MMP aims at facilitating Electronic Data
Commerce) & Industry/ Interchange amongst various agencies involved
Department of in the process of Imports and Exports.
Commerce
2. e-Biz Department of The project aims to provide comprehensive
Industrial Policy & Government-to-Business (G2B) services to
Promotion / business entities with transparency, speed, and
Department of certainty
Information
Technology
3. Common Department of The MMP is a part of the core and support
Services Information infrastructure of NeGP and aims towards offering
Centres Technology e-Governance services to rural citizens.
4. India Portal Department of The MMP aims towards providing a single
Information window access to information and services of
Technology and Government at all levels, in a multilingual form.
Department of
32
Line Ministry /Dept

Responsible
Administrative
Reforms & Public
Grievances
5. National Department of The MMP aims at providing a common interface
Service Delivery Information between the service seekers and service
Gateway Technology providers (Government Department).
(NSDG )
6. e-Courts Department of Justice, The MMP aims at utilising technology for
Ministry of Home improved provisioning of judicial services to
Affairs citizens.
7. e-Procurement Ministry of Commerce The MMP of the Ministry of Commerce aims at
& Industry/ DGS&D rolling-out IT-enabled procurement by
Government Departments.
3.6. NeGP Components

For the implementation of NeGP, DIT is creating Common Core and Support Infrastructure
(National/State Wide Area Networks, National/State Data Centres, CSCs & Electronic Service
Delivery Gateways) and has made suitable arrangements for monitoring and coordinating the
implementation of NeGP under the directions of the competent authorities in this regard. The 8
key components identified for successful implementation of various e-Governance Projects is as
below:
Sr. No Support Components Line Ministry/Department

Responsible
1. Core Policies DIT
2. Core Infrastructure (SWAN, NICNET, SDCs, etc.) DIT
3. Support Infrastructure (CSCs, etc.) DIT
4. Technical Assistance DIT
5. R&D DIT
6. Human Resource Development & Training DIT and DAR&PG
7. Awareness & Assessment DIT and DAR&PG
8. Organization structures DIT and DAR&PG
3.7. NeGP Framework

The e-Governance framework would include Back-ends (databases of the different government
agencies, service providers, state governments etc.), Middleware and the Front-end delivery
channels (home PCs, mobile phones, kiosks, integrated citizen service Centres etc.) for citizens
and businesses. The Middleware comprises of communication and security infrastructure,
33
gateways and integrated services facilitating integration of inter-departmental services. The

following figure provides the depiction of the NeGP framework:
NeGP Program Framework

3.8. Core & Support Infrastructure
Under NeGP, all services are supported by three infrastructure pillars for efficient delivery of
“web-enabled” anytime anywhere access to information and service across the country, NeGP
envisions 3 pillars of e-Governance infrastructure namely:
a) State Wide Area Network (SWAN)
b) National Data Bank/State Data Centres (SDC)
c) Common services Centres (CSC)
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a. State Wide Area Networks (SWANs)

State Wide Area Network (SWAN/NICNET) that will provide connectivity @2mbps up to the block
level. It is also envisaged that SWANs will have base stations to enable wireless connectivity
beyond block level.
The Government approved the Scheme for establishing State Wide Area Networks (SWANs)
across the country. The objective of the Scheme is to create a secure close user group (CUG)
government network for the purpose of delivering G2G and G2C services. The duration of project
is 5 years with a pre-project implementation period of 18 months. The project is being
implemented as a Central Sector Scheme with Rs. 2005 Crores as Grant-in-aid from Department
of Information Technology and balance fund from the State Plan fund under Additional Central
Assistance (ACA) allocation.
The salient features of the SWAN scheme as envisaged under the NEGP are:
 One PoP at each State/ District/ Block Headquarter
 Bandwidth capacity ( ≥ 2 Mbps for each link)
 Appropriate Service Level Agreement tied up with Bandwidth Service Provider/ Network
Operator
 PoPs designed as configurable Bandwidth Aggregation points with scalability to enable
vertical & horizontal connectivity
 Gateway to NICNET at State/UT headquarter PoP for Central Services
 Connectivity to Data Centre and Disaster Recovery Centre
 Network Performance Audit
The following figure provides an overview of the envisaged view of SWAN.
The SWAN Scheme for 29 States & 6 Union Territories, at an estimated outlay of Rs. 3334 Crore,
was approved by Government of India, in March 2005 to set up State Wide Area Networks
(SWAN), interconnecting each State / UT Head Quarter with District Head Quarter and below
each District Head Quarter with the Block Head Quarters with minimum 2 Mbps leased line.
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SWANs across the country, when fully implemented, will create more than one million route – km
of network connecting more than 100,000 government entities. This would bring a connected
government space which is unprecedented and would bring a paradigm shift in the way the
government works for itself and for the citizen. Success of various e-Governance initiatives taken
up at the State and the Central level would heavily depend on maximum utilization of SWANs.
b. State Data Centre (SDC)
State Data Centre (SDC) has been identified as one of the important elements of the core
infrastructure for supporting e-Governance initiatives of National e-Governance Plan (NeGP).
The concept of the State Data Centres is designing of State Data Centres for the States to
consolidate infrastructure, services and application to provide efficient electronic delivery of G2G,
G2C and G2B services. These services can be rendered by the States through common delivery
platform seamlessly supported by core Connectivity Infrastructure such as State Wide Area
Network (SWAN) and Common Services Centre (CSC) at the village level.
State Data Centre would provide many functionalities and some of the key functionalities are
Central Repository of the state, Secure Data Storage, Online Delivery of Services, Citizen
Information/Services Portal, State Intranet Portal, Disaster Recovery, Remote Management and
Service Integration etc. SDCs would also provide better operation & management control and
minimize overall cost of Data Management, IT Resource Management, Deployment and other
costs. The following is the bundle of services expected to be provided by the SDC.
The objectives for design of SDC are:

 Availability of ‘IT Infrastructure’ to State Departments and Agencies
 Enhanced reliability
 Higher availability of system and data – 99.74%
 Guaranteed Service Levels
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 Efficient & effective management of Information Security related issues

 Centralized and Simplified Management
 Improved quality of Data housekeeping
 Dynamic Scalability
 Lower risk of data loss
 Better management of security & access control
 Faster Implementation cycle
Department of Information Technology (DIT) has formulated the guidelines to provide Technical
and Financial assistance to the States for setting up State Data Centres. These guidelines also
include the implementation options that can be exercised by the state to establish the SDC. SDC
scheme has been approved by the government with an outlay of Rs. 1623.20 crores over a
period of 5 years.
c. Common Service Centres (CSCs)
The Government has approved a Common Services Centres (CSCs) Scheme for providing support
for establishing 100,000 Common Services Centres in 600,000 villages of India. The scheme, as
approved by the Government of India, envisions CSCs as the front-end delivery points for
government, private and social sector services to rural citizens of India, in an integrated manner.
The objective is to develop a platform that can enable government, private and social sector
organizations to align their social and commercial goals for the benefit of the rural population in
the remotest corners of the country through a combination of IT-based as well as non-IT-based
services.
CSC Ecosystem
The Scheme has been approved at a total cost of Rs. 5742 Crores over 4 years, of which the
Government of India is estimated to contribute Rs. 856 Crores and the State Governments Rs.
793 Crores. The balance resources would be mobilized from the private sector. The Common
Services Centres would be designed as ICT-enabled Kiosks having a PC along with basic support
equipment like Printer, Scanner, UPS, with Wireless Connectivity as the backbone and additional
equipment for edutainment, telemedicine, projection systems, etc., as the case may be.
The Scheme is to be implemented through a Public Private Partnership. CSCs are the primary
physical front-end for delivery of Government and private services to citizens. They are one of
the three pillars of the core and support infrastructure of the National e-Governance Plan for
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enabling anytime anywhere delivery of government services, the other two being (a) the State
Wide Area Network (for Connectivity) which has already been approved by the Government for
Rs. 3334 Crores and b) the State Data Centre Scheme (for secure hosting of data and
applications) for which the draft guidelines are under preparation.
The Scheme is being implemented through a Public Private Partnership. CSCs are the primary
physical front-end for delivery of government and private services to citizens. They are one of the
three pillars of the core and support infrastructure of the National e-Governance Plan for enabling
anytime anywhere delivery of government services, the other two being (a) the State Wide Area
Network (for Connectivity) which has already been approved by the Government for Rs. 3334
Crores and b) the State Data Centre Scheme (for secure hosting of data and applications) for
which the draft guidelines are under preparation.
Implementation of a mission-oriented project of this size and scope would pose significant
challenges of project management at the national level as also in exploiting opportunities to
achieve significant economies of scale in the identification, customization and implementation of
the physical and digital infrastructure required for the project. Further, many of the potential
citizen-centric services would lend themselves to aggregation at the national level. To serve the
above objectives and to enable the state-specific implementation plans to benefit from such
economies of scale, aggregation of best practices, content providers, etc. DIT has appointed a
National Level Service Agency (NLSA) with defined Terms of Reference to coordinate the entire
activity. The CSC Scheme has a 3-tier implementation framework:
 At the first (CSC) level would be the local Village Level Entrepreneur (VLE- loosely analogous
to a franchisee), to service the rural consumer in a cluster of 5-6 villages.
 At the second/middle level would be an entity termed the Service Centre Agency (SCA loosely
analogous to a franchiser) to operate, manage and build the VLE network and business. An
SCA would be identified for one or more districts (one district would cover 100-200 CSCs).
 At the third level would be the agency designated by the State- the State Designated Agency
(SDA) - to facilitate implementation of the Scheme within the State and to provide requisite
policy, content and other support to the SCAs.
d. State e-Governance Service Delivery Gateway (SSDG)
SSDG is a middleware that is being positioned in all the States/ UTs and also at the national level
(www.nsdg.gov.in) as a soft-infrastructure piece for the delivery of e-Governance services. The
purpose of this middleware is to de-couple the front-end and the back-end in the delivery of
services to ensure scalability, inter-operability between heterogeneous systems, authentication,
ensure assured delivery, message routing, transaction logs, audit trails, time-stamping etc. and in
future also provide for joined-up and integrated services. This middleware has a larger scope
than being used in a single project and will lead to convergence of the proposed model with the
other MMPs (like e-District) as and when they are realized. SSDG will be hosted in the State Data
Center (SDC).
The objectives of the NSDG / SSDG are:
 Act as a catalyst in enabling the building of standards based e-Governance applications with
Gateway as the middleware to ensure interoperability
 Enable integration across Centre, State or Local Governments there by enabling Integrated
Service Delivery and a Service Oriented Architecture (SOA) leading to joined up government
 Help protect the legacy investments in software and hardware by easily integrating them
with other technology platforms and software implementations
 De-link the back-end departments/Service Providers (SP) from the front-end Service Access
Providers thereby
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o Ensuring separation of concerns of service access from the service implementation

i.e. separates the Portal, CSC, Kiosks etc. from the government services which reside
in the back-end departments.
o Encouraging competition at the front-end by allowing independent service access
providers to provide services with varying levels of complexity, cost and service
quality levels.
 Shared services can be added on to the core services as and when required, as special
common services of the Gateway without affecting the core functionality of the Gateway,
thereby providing flexibility and modularity.
o encourage back-end services to be plugged into the infrastructure as and when they
are ready,
 Reduce the cost of e-Governance Projects by rationalizing, distributing and optimizing the
services framework
 Use PKI infrastructure for secure transactions. Provision exists for encryption of department
payload to ensure confidentiality of department data. The gateway provides digital signature
and certificates to all stakeholders interacting with the gateway for identification,
authentication and authorization. Transaction and audit logs help track government data.
 Enable transaction logging and time stamping for tracking of transactions and centralized
control
 Help the Departments backend workflow evolve gradually as the Gateway acts as a
middleware de-linking the back-end from the front-end. This means that even the
Departments which do not have the complete automation or work flow at the back can still
deliver e-Service to the citizens in a limited manner through the Gateway. To cite as an
example, a server may be put up at the department for message exchange with Gateway in
absence of readily available infrastructure at the department.
NSDG / SSDG Conceptual Architecture and Gateway Messaging specifications
SSDG as a messaging middleware acts as an intelligent hub and routes service requests from a
Service Seeker (Service Access Provider) to a Service Provider (typically a back-end Government
department that puts up its service for electronic delivery) and in return sends the response back
to the Service Seeker through the Gateway.
Without Service Delivery Gateway With Service Delivery Gateway

The following figure illustrates the SSDG structure linking up the Service Seekers (citizens and
businesses), Service Access Providers and the Service Providers (government departments or
third party service providers).
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The SSDG will link two major entities:

1. Service Providers (SP): The back-end government departments or any other third-party
agencies offering e-Services to citizens and businesses, and to other government departments,
are collectively referred to as Service Providers (SP). Third-party SPs may offer specialized
services such as authentication, payment gateway services, or joined-up services.
2. Service Access Providers (SAP): A Service Access Provider is an entity, which facilitates
government service access by Service Seekers, by providing a front-end infrastructure. Linked to
the Service Access Providers will be the Delivery Channels, which would be the access
mechanism for the citizens and businesses to avail the e-Governance services.
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4. e-Governance Project Development Lifecycle

This section discusses the Lifecycle of an e-Governance project including various phases in the
Lifecycle, activities performed in each phase along with the outputs at each phase.
4.1. Challenges in current environment (e-Governance Projects)
Following discusses the key challenges in various e-Governance projects implemented at
Central/State/Local government level.
• Many of the projects are towards computerization, but not modernization (reason: As-Is
computerization)
• Significant investments into projects with minimal impact/improvement in service delivery
and administration
• Minimal online or self services to the stakeholders
• IT enabled processes with no improvement in the service levels
• Projects not completed in time – delayed for years
• IT systems not meeting the business requirements – common challenge
• Low return on investment (value in terms of reduction in service delivery timelines,
administrative burden, improvement in SLA’s, quality of service…..)
• Failure in meeting defined project objectives (if any are defined)
• Poor quality of the product & services (performance of product and vendor)
• Vendor lock-in
• And many more…
4.2. Some key factors contributing to current environment
Following lists some key factors contributing the key challenges listed above.
• Project design incompatible with current readiness and environment
• Least time spent by the organizations in planning and design
• Lack of clear and measurable project goals, objectives and anticipated benefits
• Larger emphasis on IT enablement with minimal focus on business benefits
• Minimal focus on key project enablers (GPR, people change, capacity building..)
• Minimal focus on project and systems quality assurance
• Poor communication to the stakeholders and users on objectives and benefits
• on objectives and benefits
• Inadequate resources for project (people and funding)
• Lack of capacities to conceptualize and manage e-Governance projects
• Senior leadership attention towards e-Governance initiatives is minimal – often regarded as a
low priority
• Lack of stable project and permanent leadership with managerial powers to drive projects
• Lack of capacities to conceptualize and manage e-Governance projects
• Minimal focus on key project enablers (GPR, people change, capacity building..)
• Poor communication to the stakeholders and users on objectives and benefits
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• Inadequate resources for project (people and funding)

• Minimal focus on project and systems quality assurance
4.3. Need for a more robust approach for e-Governance
For addressing the above discussed challenges, it requires a comprehensive and robust approach
for Conceptualisation, implementation and maintenance of an e-Governance project. The
approach shall support government or public sector organizations to:
• Get it right first time
• Orient project designs with customer focus and needs
• Achieve heightened focus on business and stakeholder benefits
• Prioritization of requirements in line with business and stakeholder needs
• Support in adoption of best practices and right approach at each phase
• Manage the private sector participation and project delivery to the results
• Phased implementation with minimal impact and maximum results to stakeholders
4.4. Essential elements of e-Governance project
Following lists some key and essential elements of an e-Governance project.
• Vision and strategy
• Business Process Re-engineering
• Enterprise Architecture
• Software development and IT Infrastructure implementation
• Business model
• Legal Framework
• Change Management
• Training and Capacity Building
• Project and Program Management
• Monitoring & Evaluation…
4.5. e-Governance Project Lifecycle
The diagram below presents an overview of Lifecycle of an e-Governance project followed by a
list of key activities performed at phase of the Lifecycle.
1. E-Governance 4. Implementation 5. Develop and

2. Current State 3. Future State 6. Operate and
Strategy approach and implement IT
Assessment Definition sustain
Development sourcing system
Project Management Office/Unit
Change Management and Communications
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The diagram below lists the key activities performed at various phases of e-Governance project
Lifecycle.
E-Governance Implementation Develop and

Current State Future State Operate and
Strategy approach and implement T
Assessment Definition sustain
Development sourcing system
Needs Assessment Critical assessment of Process reengineering Define implementation Definition of detailed System operations
current business and to –be process approach and phasing functional and and maintenance
Define clear vision & processes and pain definition plan (functional and technical requirements
objectives areas geographic) Software change
Identity IT enablement System design and management
Prioritization of Best practices in opportunities and Assess detailed development
services and projects similar environments requirements funding requirements Rollout services and
and business model Software quality systems (functionality
Incorporate domestic Assess legal Define changes to the assurance, and geography)
and global learnings framework and current legal and regulatory Develop vendor acceptance testing
limitations environment evaluation and and auditing Objectives and
Identify institutional selection criteria benefits evaluation
structures & capacities Assess current ICT Develop People Training and capacity and reinforcement
for implementation systems and their change and capacity Develop KPIs and building
ability to support future building plan performance levels for Sustained change,
Define funding plans services and systems Change management capacity building and
requirements Develop project and project communications..
Assessment of current awareness and Develop RFP communications
Define monitoring and capacities at all levels communication
evaluation approach… and their requirements… Bid evaluation and Project documentation
preparedness for e- vendor selection
governance.. Project go-live
4.5.1. eGLC vs Software Development Lifecycle (SDLC)

The table below compares Software Development Lifecycle and e-Governance Lifecycle.
SDLC eGLC
• focuses activities performed at each stage • SDLC is an integral part and only a
of a software development component of eGLC
• Methodology used from the conception • eGLC focuses on business and stakeholder
phase through to the delivery needs and priorities
• Focuses on technical artifacts and right • Outcomes and benefits oriented approach
approach for software design,
• All-encompassing with focus on other
development , implementation and
critical enablers (GPR, people, legal, M &
management
E..)
• Focuses on technical and process related
aspects of software
• Focuses Software Quality Assurance to
get the end product in line with defined
requirements
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4.5.2. e-Governance Project Lifecycle

4.5.2.1. Phase 1: e-Governance Strategy Development
The table below lists key activities performed in e-Governance Strategy Development phase and
illustrative deliverables.
Key Activities Deliverables
• Needs Assessment • e-Governance vision
• Define clear vision & objectives • e-Governance Objectives
• Prioritization of services and projects • e-Governance Strategy
• Incorporate domestic and global
learning’s
• Identify institutional structures &
capacities for implementation
• Define funding requirements
• Define monitoring and evaluation
approach…
4.5.2.2. Phase 2: Current State Assessment

The table below lists key activities performed in Current State Assessment phase and illustrative
deliverables.
To perform an in-depth assessment of • Process maps
business functions and services identified for
• Pain points
coverage under e-Governance project to
understand: • Initial improvement areas
• current approach for performing the • Stakeholder needs
business functions and service delivery
• IT Systems
• the key challenges and to identify
• Scope and functionality
improvement areas
• Strengths and gaps
• stakeholder needs and expectations
• IT Infrastructure (network, security, data
• good practices and learnings from similar
center)..
implementations in similar domains
• Organizational structures
• current systems (IT) implemented in the
department, coverage and gaps • Roles and responsibilities
• organization structures and people • Capacities and skill sets
capacities etc
• Change barriers..
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4.5.2.3. Phase 3: Define Future State (To-be definition)

The table below lists key activities performed in Future State Assessment phase and illustrative
deliverables.
• To define how the identified business • To-be business processes
functions and services shall be performed
• New process KPIs/metrics
going forward
• Changes to the legal and policy environment
• To define the new business processes
• Functional Architecture and Requirements
• To define IT solutions and services for
specifications
automation of new business processes
• Enterprise Architecture covering Application,
• To define people change management,
data, network, security, data center
capacity building and communication
architecture
requirements for project implementation
• Data digitization and migration strategy
• SLAs
• Institutional structures needed for project
implementation
• Training and Capacity building plan
• Change Management Plan
• Communications Management Plan
4.5.2.4. Phase 4: Implementation approach and sourcing

• Development of Implementation • Implementation Approach and Plan
Approach and Plan
• Implementation timelines
• Development of Business Model
• Identification of key stakeholders and their
• RFP Development roles and responsibilities
• Vendor Evaluation and Selection • Monitoring and Evaluation (M & E) Plan
• Project investments and costs
• Business/implementation model
• Payment terms
• SLAs
• Procurement approach
• Request for Proposals (RFP)
• Contract Documents/Agreements
• Pre-bid minutes and clarifications
• Vendor evaluation reports
• Vendor (s) identification
• Signed contract documents
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4.5.2.5. Phase 5: Develop and Implement IT System

• Application Software Development • e-Governance Solution/Software
• IT Infrastructure Creation • IT Infrastructure
• Third Party Acceptance Testing
• Training and Capacity Building
4.5.2.6. Phase 6: Operate and Sustain

Key Activities
• IT Systems Operations and Maintenance
• Monitoring and Evaluation
4.5.3. Project Management Office/Unit

Key Activities
• Definition of Programme and Project implementation plans
• Identification of stakeholders and key responsibilities
• Identification of external support needed from market (consultancy services, software
development, IT infra creation, change management…)
• Definition of scope of work for the vendors
• RFP Preparation and vendor selection
• Monitoring project implementation plans
• Scope change management
• Risk assessment and management
• Issue Management
• Services/Systems quality assurance
• SLA Monitoring
• Project financial management
• Change Management and Communications
• Training and Capacity building
• Monitoring and Evaluation of project objectives and benefits….
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4.5.4. Change Management and Communications

Key Activities
Change Management
• Understand the changes lead by the project (policy, processes, systems..)
• Identify the impacted stakeholders
• Assess the readiness of stakeholders to adopt change
• Identity key risks surrounding resistance to change
• Devise measures to address the identified risks
• Develop change management strategy
• Implement strategy
• Monitoring and corrective actions
Project Communications
• Understand the project scope and coverage
• Identify the objectives, benefits
• Identify the stakeholder groups impacted by the project
• Identify the communication needs for each stakeholder group
• Identify the communication channels
• Development communications management strategy
• Implement strategy
• Monitoring and corrective actions
Capacity Building
• Understand the changes lead by the project (policy, processes, systems..)
• Identify the impacted stakeholders
• Understand the skill sets needed to adopt the new systems and processes
• Assess the current skill sets and capacities in the organization
• Identify the training needs to bridge the gaps in the skill set…
• Identify the training courses and approach for training
• Implement Training Plan
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5. Selected e-Governance Projects

e-Governance has gone beyond the computerization of government processes and into the
realms of good governance leading to vast opportunities for transforming governance. Hence,
e-Governance in India has provided an important platform to upscale and integrate various
e-Governance initiatives at district, state and individual Ministry level.
The recent Nation-wide Impact Assessment exercise undertaken by the Department of
Information Technology (DIT) on the three National level projects (MCA21, Passport, Income
Tax) and three State level projects (Land records, Property Registration, Transport) endeavors to
provide insightful and comprehensive analysis of how far e-Governance have been able to
provide electronically enabled services to the common man.
5.1. e-Governance Success Stories (Central Sector MMPs)
Some of the projects that have become success stories at the central government level and that
have significantly impacted the day to day life of the common citizen are:
5.1.1. Indian Railways Reservation System
Till early 90s the train reservation system was manual. The issues were as follows:
• A normal citizen was expected to come to a particular counter to book a reservation
• Return reservation was a big challenge
• The confirmation of the seat was not possible instantly
• Speed money was very common to get a reservation due to non-transparency
However post the reservation, it was possible to do the business process Re-engineering aimed
at citizen convenience. Today the citizen has significant convenience as compared to 20 years
back, viz:
• Passengers can book any train from any booking location
• Information regarding the availability of seats is easily available
• Reservations can be made through website – a transparent system
• Railway Call Centre supported by Interactive Voice response System
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5.1.2. Passport
Key Challenges:
1. Queue Management system:
• Time taken for submission of the application
was more than 2 hrs
• Unclear guidelines and lack of awareness
among applicants
• Less number of counters for accepting
applications
• Seating arrangements not based on the number
of transactions
• Space constraints in the offices
2. Infrastructure and public utilities
“Need for overall improvement in the public utilities such
as Water, Canteen, Toilets, Seating arrangements etc.”
3. Variations in service levels
Different service levels for processing applications
4. Delay due to Police Verification Process
“Manual procedures for sending the applications for police verification leading to delay in the
overall procedure”
Pain areas (Based on actual survey done on Passport applicants):
• Many citizens complained that the online tracking system was incorrect
• Only 7% of the respondents received their passport within the stipulated time of 35 days
• 63% were willing to pay more for submission through an online system
• 44% felt that the queue management system was not effective
• 46% of respondents felt that the staff was efficient & supportive, and 43% of the
respondents felt otherwise
• 47% disagreed that there was proper public infrastructure available
A BPR exercise was carried out and the revised processes which were the outcome of this
exercise are mentioned below:
a. Outsourcing of the front-end activities (Facilitation Centres) of the passport
issuance system
• No citizen needs to visit the back-office (i.e. the RPOs)
• Outsourcing for application submission, data entry, receipt of fees, verification of original
documents, enquiry and grievance acceptance
b. “Anywhere Anytime Application submission and real-time Status Tracking”
• Online submission, 24x7 through any internet facility (Internet Kiosk, Home)
• Real-time tracking through centralised system
c. Assess the possibility of increasing the number of Government officials who could
verify the documents
• Officials issuing verification certificates for passport related services
d. Linkage of the Passport office with a designated point at the police department
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• Auto-segregation of application details for police verification (Adverse and clear flagged
separately)
• Automated update of the PV status- leading to reduction in overall processing
• Automated reminder for clearance of pending reports
e. Centralized back-office
• Centralized printing of the passports for the Missions/Passport offices to control
pendency
• High quality fast printers for centralized back-office
• Printing of e-Passports (Diplomats)
• Outsourcing of the centralised back-office
f. Exception handling for review / objection cases
• Automatic escalation of the objection cases by the system
• Objection cases-Police Adverse cases, PAC Check etc.
5.1.3. Ministry of Corporate Affairs (MCA)
MCA 21 is an innovative e-Governance initiative that aims at continuously repositioning the
Ministry of Company Affairs (MCA) as an organization capable of fulfilling the aspirations of its
stakeholders in the 21st century. This program builds on government’s vision to introduce a
service oriented approach in design and delivery of government services, establish a healthy
business ecosystem and make the country globally competitive.
The programme will provide customers easy and secure access to MCA services, through the
infrastructure being setup for the purpose, any time and from any place and in a manner that
best suit the stakeholders. The focus of the programme is to bring about a fine balance of the
stakeholder requirements – between facilitation and control – as a blend of well-defined goals
and performance metrics. Adopting international best practices, the goals have been set to bring
immense value to the stakeholders.
This project is conceived with visionary goals and objectives for which, NISG had prepared a RFP
based on which the implementation partner has been selected in November 2004. A consortium
led by TCS with CMC as partner has been awarded the responsibility of implementing the project
on a PPP model and the solution deployment started in March 2005. The project has gone live on
March 16, 2006, with the launch of the project by the honorable prime minister. The key
findings of the study across projects show that:
 The number of trips to Governments offices have reduced from 8 trips to 1-2 trips.
 Waiting time at the offices has reduced in the range 20-40%.
 People show strong preference to computerised systems.
 There has been direct cost saving to citizens in the range of Rs. 50 – 100.
 In Land Records project, there has been a significant reduction in the payment of bribes
5.1.4. Income Tax Department (ITD)
Central Board of Direct Taxes (CBDT) has undertaken a business process Re-engineering project
under the leadership of the honorable finance minister of India. A new directorate of Income Tax
has been set up at New Delhi for this purpose. The objective of this project was to:
• Re-evaluate all existing processes and procedures to determine future direction
• Focus on how organizations can meet the requirements of stakeholders
• Use leading practices in other organizations to develop milestones, objectives, targets to
benchmark organization results and redesign new processes
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• Simplify and empower the organizational structure

• Increase alignment between process, people and technology
• Change Management and Capacity Building
The overall scope of work for the project was to:
• Review the overall strategic framework and vision of the department keeping in mind basic
functions of the department
• Redesign processes across all activities of the Income Tax Department based upon
international leading practices and unique requirements and limitations of the Indian Tax
Administration system
• Identify improvement opportunities, quick wins and a transition plan for implementing the
BPR recommendations including the changes and resources required to implement
• Detailed change management measures, especially for changes recommended in
organizational design as a corollary to the implementation requirements of the redesigned
process
• Suggest changes in physical IT infrastructure in line with the new business design
The services that are being delivered as part of this assignment are as follows:
Business Process Re-engineering
• Study of existing business processes in four strategic process areas namely Pre-Assessment,
Assessment, Post-Assessment and Appellate
• Study of international leading practices in other countries with respect to the Income Tax
services being delivered
• Collection of baseline data in eight cities to statistically support the issues and opportunities
identified in the current business processes
• Gap analysis and design of “To-Be” processes. Conduct process redesign workshops with
stakeholders in Income Tax Departments
Assessment of Taxpayer Perception
• Voice of Customer Survey in eight cities across various offices of the Income Tax Department
to assessment
Institutional Analysis
• Study of existing manpower and capacity building requirements to support the re-engineered
processes
• Develop an organizational structure including functions, roles and responsibilities, job
requirements, job roles etc.
• Assessment of organizational strengths and weaknesses
• Evaluation of change readiness assessment within the department
• Development of a flexible change management plan to transition the entire organization
• Study of existing technology infrastructure and analysis and design of technology enablement
plan to suit the needs of the re-engineered organization
Training
Training needs assessment to improve skills, raise awareness and to communicate requirements
of ITD’s change initiative goals to both internal and external audiences.
Develop Implementation Strategies.
Selected strategies needed to be agreed upon to support the construction of the changed or new
policies, processes, organization, technologies and facilities.
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Develop Implementation Plans

Migration plans and detailed implementation plans were prepared to support migration to the
changed environment. The BPR report had among other things:
• an implementation approach for “quick wins” identified earlier
• changes identified in the business rules and processes
• submission of implementation plan
5.2. e-Governance Success Stories (State Sector MMPs / Projects)
5.2.1. Integrated Land Information System (ILIS) for Andhra Pradesh
Existing System of Land Records
• Legacy of British System
• Land Records created mainly for ‘Land Revenue’
• Based on ‘Presumptive Ownership’
• Processes & services, mostly manual
• Managed by multiple agencies
o Survey and Land Records: FMB/ Tippon, Village Map, Shetwar/RSR
o Revenue Department: ROR Register, Adangal/Pahani, Pattadar Khata Register
o Stamps & Registration: Register of Transactions (Book 1-4, & Indices)
o Local Bodies: Town Survey Register, Town Survey Maps, Layout plans, Property tax
register
Land Records – Concerns
• ‘Registration’ does not confer ‘Title’
o Insecurity about Title - Loss estimated at 1.3% of GDP, due to unclear land titles
o Title and boundary disputes - Costly litigation
• Registration & Land records - Stand-alone systems
• Multiple handling agencies - Lack of co-ordination
• Non-availability of up to-date records - Developmental and planning activities affected
Vision of ILIS
‘To establish and manage a comprehensive and sustainable Land Information Management
System, which serves as a record of conclusive title of all land parcels and provides related
services in an integrated, efficient and cost effective manner.’
5.2.2. Transport
• ‘Sarathi & Vahan’ are under implementation in various Stages in many States. ‘Sarathi &
Vahan’ provides total automation of Regional Transport Office transactions comprising of Fee
and Tax, all stages of Registration, License, Permit and Enforcement, Fitness, Fee and Tax
sections through workflow based system.
• Several States including Delhi, Gujarat, Maharashtra, MP, etc. are issuing Smart Card Driving
Licenses.
• In Andhra Pradesh, CFST (Citizen Friendly Services of Transport Department) is already
implemented under PPP Model in all 38 offices with 400+ counters across the State.
• In Tamil Nadu, State government has set up a modern control room at the state traffic
planning cell (STPC) office on Kamarajar Salai to monitor the 122 GPS-enabled police patrol
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vehicles deployed along the national highways across the state. The system helps the police
patrol vehicles to reach the accident spot within two minutes of the incident.
5.2.3. e-District
e-District is a State Mission Mode Project under the National e-Governance Plan (NeGP). The
project aims to target high volume services currently not covered by any MMP under NeGP and
undertake backend computerization to e-enable the delivery of these services through Common
Service Centres.
Districts are the primary delivery channels for government administration which delivers a large
number of services to the citizens; therefore e-Governance can significantly improve government
service delivery.
Objectives of e-District:
• To integrate and seamlessly deliver citizen services by district administration through
backend digitization and process redesign
• To create an efficient delivery mechanism from the Government that brings citizens to the
district administration
• Implementation of an efficient electronic workflow system for reduction of workload of the
district personnel
• To create a smart link/interface between citizens, governments, public utilities and other
information providers
• Fast processing of public cases/appeals/grievances dissemination of information
• Focus is on backend computerization
e-District will primarily focus on the back end computerization and use the SWAN for connectivity
and CSC for service delivery. The main focus would be on ensuring that the project is self
sustaining after the initial investment. This is possible if revenues generated from services are
available at the district level for maintenance, upgradation and expansion.
5.2.4. Excise / VAT
The Department of Excise & Taxation introduced e-Governance by leveraging ICT to streamline
Tax Administration and improve upon its functioning in order to bring efficiency, transparency
and accountability.
The objective of the project is to establish an ICT system with focus on:
• Implementation of an electronic workflow system to improve internal administrative efficiency
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• Faster processing and monitoring resulting in better and transparent delivery of service to the
tax payers,
• Backend computerization of the functions of the Department
• Standardization of commercial tax administration across the State,
• Introduction of a bouquet of rationalized citizen-centric and service-oriented processes
• Enhancement to the quality of services provided to citizens
• Addressal of public cases / appeals / grievances with service levels
• Dissemination of information as per public requirement
• Plug-tax loopholes and foster a citizen-centric dispensation aimed at better compliance
• Increase the tax payers base
• Strengthen the government's revenue base
• Establish a real-time MIS system for prompt and efficient decision making
• Suggest improvements based on innovations, initiatives and best practices from similar
systems
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6. e-Governance Vision and Strategy

6.1. Understanding e-Governance Strategy
‘Strategy’ in simple terms is a plan of action for achieving the defined goals and objectives and is
a road map to lead an organization from its present state to its desired medium or long term
future state. ‘e-Governance Strategy’ is an approach or a plan of action stating how Information
Technology will be leveraged in achieving the stated goals and objectives. e-Governance strategy
is needed to:
• provide direction and guidance in IT adoption
• clearly identify the clear and measurable benefits from leveraging IT
• clearly identify the actionable and measurable initiatives for achieving the stated goals/
benefits
• estimate the resources (people, funding..) needed for
• maximize effectiveness of ICT initiatives within Government
• effectively plan and utilise the resources to gain maximum results
• map path from pilot experiments to sustainable, scalable systems
Key considerations for development of e-Governance strategy include:
• Ensure consistency with economic development priorities
• To keep the business goals and objectives on priority, not the ‘technology’
• To pursue real development goals not just “technology push”
• Secure political support
• Establish stakeholder participation mechanisms (including demand)
• Secure stakeholder buy-in of implementation plan
6.2. Key Elements in e-Governance Strategy
Diagram below summarizes the key elements of an e-Governance strategy and following
paragraphs discusses each of these elements in summary.
Vision
What? Vision and
Objectives
Objectives & Benefits
How? Stakeholders/ Services/ Delivery Channels
When? Implementation approach and plan

Strategic
Institutional Structures and Management planning/
Who? Framework (Programme Management) implementation
plan
With what? Funding/Financial Resources
How far have we

Performance Management Framework ( M & E )
gone?
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6.2.1. e-Governance Vision

Vision is a succinct and inspiring statement of what the organization intends to become and to
achieve at some point in the future. Before embarking on one or several e-Government projects,
government should make sure that there is a vision that provides a roadmap and guidance for
institutional change. A vision statement takes into account the current status of the organization,
and serves to point the direction of where the organization wishes to go. The vision statement
provides the direction for the organization, while not inhibiting the development of the strategy
that will allow the organization to reach the desired goal. Is not about ‘automation’ or
‘computerisation’…it is about ‘what’ will be achieved using IT and should be inline and supportive
of organization’s business vision. A vision statement should:
• Be clear, intuitive and simple
• Reflect the specific conditions and ambitions of the organization
• State what will be and will not be done
• Consider needs and opportunities
• Be aligned with overall development strategy
• Involve consensus building by stakeholders
Following diagram presents an overview of approach for development of e-Governance vision.
Identifying and consulting stakeholders
Understand problems, needs and expectations of

Stakeholders
Draft a common vision based on stakeholders needs and

expectations
Aligning vision with more general local development

needs and opportunities
Consolidating and agree on final vision
Examples of e-Governance vision include:

a. “Use e-Government solutions as the primary delivery channel to provide a single, easy,
integrated, and reliable means of access to Municipal information and services in order to
continuously improve the quality of services provided for the residents, businesses and
partners, reduce internal operational overhead, enhance revenues and promote Dubai’s
image as a commercial and tourism hub in the Gulf region.”
b. eBiz – Establish One-stop-service delivery centre for G2B Services in India, provide services
in simplified and convenient manner and thereby improving the investment climate in the
country
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c. e-Procurement: Establish common procurement platform for realizing the right value for the
goods & services, minimizing the cost of procurement and providing equal opportunities for
businesses…
d. NeGP Vision - “Make all Government services accessible to the common man in his locality,
through common service delivery outlets and ensure efficiency, transparency & reliability of
such services at affordable costs to realize the basic needs of the common man.”
e. e-Governance Vision of Canada - Using information and communication technology to
enhance Canadians’ access to improved citizen-centred, integrated services, anytime,
anywhere and in the official language of their choice
6.2.2. e-Governance Objectives
An objective is a specific and usually quantifiable statement of program achievement and is a
statement of measurable outcome which can be used to determine program progress towards
the goal. Collectively, objectives represent a quantification of the program goal. e-Governance
objectives translate the broad values within a vision into more real and tangible outcomes, with
stronger operational basis, reflecting actual process, procedures and measurable outputs.
Objectives should have measurable criteria for achieving success
e-Government does not differ from any other business endeavor/objectives and e-Governance
objectives should flow from e-Governance vision. e-Government should not be considered as a
business goal or objective by itself rather, it is a means to achieve business goals or objectives.
Accordingly, e-Government objectives should be established along two dimensions (i) Adding
benefits to the customers and (ii) Adding benefits to the organisation itself. The most effective
business objectives are often generated from your existing business strategy and e-Government
business objectives are usually driven by global reach, customer self-service and effective
information sharing.
Defining e-Governance Objectives (illustrative)
For Citizens (General/ambiguous For Citizens (Specific Objectives):
Objectives):
• Streamlined, standardized electronic • Provide Passport to citizens in 3 business
information gathering and access days
• Reduce the time to access relevant • Instantaneous payments of taxes & bills
information online through kiosks
• Enable citizens to find benefits and
determine eligibility
• Reduce the time for citizens to find
information on opportunities, schemes,
benefits etc.
• Electronic delivery of services
• Convenient, any time and anywhere
services
For Citizens (General/ambiguous For Citizens (Specific Objectives):

Objectives):
• Convenient & simplified processes for • Instantaneous access to Information
establishment, operations, expansion of Services
businesses
• Business Registration in 5 Working Days
• Minimize burden on businesses through
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online forms/services • Online Filing of Returns etc..

• Reduce time for filing and complying with
regulations
• Increased and equal access to business
opportunities with Government
For Department (Broad Objectives): For Department (Specific):

• Reduced administrative burden and • Minimize direct interaction between
Increased employee productivity department & citizens
• Information reuse across and within • Reduce cost of procurement by 50%
departments
• Migrate to 75% online service delivery by
• Cost effectiveness in operations 2008
• 0% of transactions at Department counters
for payment of taxes, duties etc..
Key Considerations for Vision and Objectives Definition:

• To be developed based on extensive interactions with stakeholders, not based on board room
discussions
• To be developed from stakeholder needs, not by department thoughts
• Stakeholders include:
− Customers (citizens, businesses..) served by the government
− Employees of organization delivering the services..
• To be developed to address the current challenges and future needs
• To take learnings/inputs from similar situations and initiatives in India and world wide…
6.2.3. Identifying Stakeholders/Services/Projects/Delivery Channels

a. Stakeholders
Clear identification of stakeholders and related benefits is a key requirement for a successful
implementation of e-Governance projects. Following discusses the typical stakeholders in
• Customer Segmentation
− Citizens
− Businesses
− Partners (suppliers and other government agencies)
• Key Customer needs to be considered
− Easy Access – single & reliable access to information & services
− Clear Accountability – for delivering the services
− Integrated view of customers - no longer be required to submit the same information/
documents repeatedly
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Priorities/Benefits sought by various stakeholders (illustrative)
People as Citizens/ Businesses Public administrators

service users (employees)
• Accessibility • Cost-effectiveness • Empowers employees

• Ease of use
• Confidentiality • Resource rationalisation • Reduced admin burden

• Privacy • Value for money
• Transparency, openness • Economic growth • Continuity and stability

• Trustworthiness • Productivity • Easy to use
b. Services
Service is the ‘action or process of serving’ or ‘an act of assistance’ or ‘a system providing a
public need’. Process consisting of a series of intangible activities that normally, but not
necessarily always, takes place in interactions between the provider and consumer. Government
is into the business of addressing the needs of citizen through the Lifecycle and Governments
interact with citizens to provide ‘services’. Every government department provides a set of
services to its identified customer base. The delivery of such services would develop an image of
the government among the customers and so making the delivery of services customer-friendly.
Categories of Government Services:
G2C Government to Citizen
G2B Government to Business
G2E Government to Employee
G2G Government to Government
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G2C Services:
Diagram below outlines various government services provided across the Lifecycle of a citizen.
• Professional Education • Employment Services
• Scholarships • Vehicle Registration
YOUTH EMPLOYEE
• Driver’s License
• Passport/Visa
• School Education • Agriculture

• Scholarships • Land Record
• Certificates • Property Registration
STUDENT FAMILY • Marriage Certificates
CITIZEN • Taxes
• Utility Services
• Municipality Services
OLD • Pensions
• Birth Certificate BIRTH AGE • Insurance
• Health Care • Health Care
• Death Certificate
G2B Services:
Diagram below outlines various government services provided across the Lifecycle of a business.
• Approvals
• Permissions
• Returns • Approvals
Expand
• Taxes • Compliance
• Permits
• Compliance Close
Operate
Start-up Explore
Opportunities
• Approvals
• Permissions
• Registrations • Project Profiles
• Infrastructure
• State Support
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G2E Services:
Diagram below outlines various government services provided across the Lifecycle of
employment with government.
• Children Education Support

• Career enhancement
• Housing support
• Job Training CAREER BENEFITS
• Healthcare
• Skill Development
• Taxes
• Salary Increments
• Utility Services
GOVERNMENT
EMPLOYEE
• Career Guidance • Pensions

• Employment Services EMPLOYMENT RETIREMENT • Insurance
• Interview • Health Care
• Offer
• Joining
The services of the government are generally classified into information and transaction services:
• Information Services
• Includes those services that solely provide ‘information’ to customers and does not
involve processing of any transactions or documents.
• Information services have relatively simple back-office operations and can be easily be
e-Government-enabled
• Transaction Services
• Transactional Services: includes those services where customers require specific actions
to be taken by the department.
• Transactional services mandate a higher degree of customer interaction and more
complex delivery operations than informational services.
Service Prioritization
Several e-Governance initiatives at central/state/local government undertaken and significant
investments made in IT enablement in various departments along with several years of time and
efforts of government and private sector consumed. However, the benefits and results in many of
the projects are minimal as the governments have adopted implementation of e-Governance
across the functions and services in one go and this approach many a times have failed in
achieving the benefits. Key reasons for such failures include:
• Most projects are undertaken as automation of department functions/workflows – lack of
services view
• Lack of citizen/customer centricity in projects design/approach
• Lack of ‘services’ point of view in project design
• Departments have undertaken organization wide computerization at one go – leading to
significant efforts with minimum/delayed results
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• Project sustainability impacted due to large size and complexity of engagements not
delivering results for long durations
• Limited resources, skill sets - lack of capacities and skill sets to manage large and complex IT
projects leading to project failures/takeoff
Prioritization of services and ICT enablement of these services in a phased manner can enable
the organization to invest the managerial efforts in successful management of implementation
and in addressing the risks and issues during the implementation. The need for the service
prioritization includes:
• To demonstrate early results
• To minimize the impact and maximise the results
• Limited resources and capacities existing with (funds and skill sets)
• Lack of readiness of stakeholders
Following outlines the approach for service prioritization:
Compile The List of Services

1
Collect statistics and information about your services
2
Identify High Value Services which need to be E-governance-enabled
3
Prioritize the implementation of the high-value services
4
Validate and rationalize the results
5
Step 1: Compile the list of services

• Identify the stakeholders addressed/served by the department
• First level of classification (citizens, businesses, employees, other governments)
• Sub-classification (e.g. of citizens served by Education Dept) – Parents, Higher
education level students, university level students, private college owners…
• Identification of department functions/services to the stakeholder groups
• Identification of list of information and transaction services stakeholder wise
Step 2: Collect information & statistics about the various services
• Collection of various operational information and statistics for the list of services identified in
Step 1
• Illustrative Information and statistics for each service include:
• Transaction volumes
• Frequency of transactions
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• Transaction processing time

• Number of customer visits
• Time spent by the customer for follow-up and track progress
• Illustrative analysis of Municipal Services
` Transaction volumes (per Frequency Processing time

year)
Birth registration 10,000 Once in lifetime 1 day
Death registration 4,000 Once in lifetime 1 day
Property tax assessment 3000 Once in lifetime 2 days
Property tax collection 100000 Twice in a year 30 minutes
Issuing building 1000 Once in lifetime 10 days

permission
Vacant Land Tax 10 Once in lifetime 2 days
Assessment
Vacant Land Collection 100 Once in a year 30 minutes
Court cases 10 NA
Water tap connection 1000 Once in lifetime 2 days
Water tax payment 250000 Once in a month 30 minutes
Step 3: Identify High Value Services Which Need To Be Transformed Into

e-Governance
Assessment of services to identify those services that once made e-Governance-enabled will
deliver the maximum value to the ‘department’ and its ‘citizens’.
Department Value Measures Citizen Value Measures
• Enhancing existing revenues; • Minimizing the number of customer visits
• Setting up new revenue streams; • Reducing the time required for service
• Reducing cost of processing transactions; • Reducing the fees and charges associated
and with a service;
• Delivering intangible benefits (e.g. • Reducing the time spent by the customer
boosting the image of the department) to follow-up and track the progress
• Reducing the time spend by the customer
to file complaints, comments and
suggestions
Measures for Value to Citizen Measures for Value to Department

• Minimizing the number of customer visits • Reducing cost of processing transactions
to the department
• Delivering intangible benefits
• Reducing the time required to deliver a
• Increase transaction volumes
service
• Reducing the time spent by the customer
for follow-up and track progress of the
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requested service
• Reducing the time spent by the customer
to file complaints.
Identification of high value services:

Diagram below presents the four box model, which can be used for identification of high value
services. Services falling in to box 1 are high value services to both citizen and the department
and needs ICT enablement on a priority basis followed by others.
Step 4: Prioritize Implementation of High Value Services

• Identify when to implement each of the high value services identified for the department
• The implementation priority for each high value service is defined based on the analysis of
service visibility and service complexity
Service Visibility Measures for Service visibility
• Describes how significantly and • Volume of transactions
extensively can customers feel and
• Customer base
experience the benefits achieved from
delivering the service into e-Governance. • Intangible benefits
• Services of high volume of transactions
and a large customer base would be more
visible to the Department customers than
other services with a very limited
customer base
Service Complexity Measures for Value to Department

• Describes how easy the service can be • Degree of existing automations
made e-Governance-enabled.
• Number of external agencies involved
• Depends on a number of factors such as
• Number of customer documents processed
the degree of existing automation,
number of external parties involved and
the number of customer documents
processed
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Following diagram provides approach for prioritization of high value services.
Step 5: Validate and Rationalize the Results

• Validate the identified services/projects for e-Governance through department’s survey,
experience and knowledge of the customers
• Verify whether high-value services can deliver benefits through e-Governance.
• Verify the feasibility of the implementation priorities assigned to the high-value services
Benefits of Service Prioritization:
• Identifies the services which are crucial to the stakeholders and which requires immediate IT
enablement
• Enables process efficiency to the high priority services
• Increased user value and satisfaction
• Reduced administrative burden
• Strategic Fit with e-Government strategy
• Increased visibility of efforts and benefits…..
c. Delivery Channels
Selection of delivery channels is a critical element. Identifying portal and internet as a service
delivery channel as the primary channel for citizens in rural parts of the State is a bad choice as
Internet penetration in villages and rural parts is LOW. Selection of right and appropriate service
delivery channel, based on target stakeholder group, determines the project success. Following
lists some key service delivery channels for various stakeholder groups.
 Channels
 Department counters
 Internet/Portal
 Call Center
 Kiosk (CSCs)
 Mobile computing etc…
 Primary Channels
 Internet & Kiosks
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 Secondary channels
 Call Center & Department Counters
 Extended Reach
 Mobile computing etc.
6.2.4. Implementation Approach and Plan
The four most widely discussed implementation models are:
• Big Bang – The e-Governance project is launched across the locations for all the functions
at the same time. All users move to the new system on a given date.
• Phased rollout - Changeover occurs in phases over an extended period of time. Users move
onto new system in a phased manner.
• Parallel adoption - Both the legacy and new system run at the same time. Users learn the
new system while working on the old.
• Pilot and rollout – A small (sample) part of the project is implemented for testing purposes
before the complete project rollout is done.
a. Big Bang Approach
• The rollout happens in a single, major event. It means:
• Roll out of all modules/functions of system at the same time
• Roll out to all categories of users at the same time
• Rollout to all locations/geographies at the same time
• Requires significant pre-implementation work, planning and stringent implementation
monitoring and control to ensure project success
• The most common criticism in the big bang implementation strategy is the risk factor; there
are a number of things that could go wrong in an instant changeover
• If successfully performed, it may minimize the impact, elapsed time and cost as the
implementation is quick and less costly than a long, drawn-out phased approach
• From earlier experiences, the likelihood of success in a big bang approach are comparatively
less
Following compares the advantages and disadvantages of big-bang approach.
Advantages Disadvantages
• Implementation time is shorter • Difficulties are more pronounced
• Implementation difficulties and "pains" • Details may be overlooked in the rush to
are condensed change
• Costs are much lower than a long, drawn- • Employees have less time to learn the new
out implementation system
• Implementation happens on a single date • Full end-to-end system testing is tough to
and everyone knows the date… carry out prior to implementation
• Fall-back scenarios are more difficult than
originally perceived
• A failure in one part of the system could
affect others
• If any issue arises, the multiplier effect of
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Advantages Disadvantages
the issue is much higher considering
geographical spread and no of users..
b. Phased Rollout
• Phased rollout would be analogous to the Steady State theory: instead of an implementation
happening in a single instance, small changes occur over time
• An organization moves off the legacy system and onto the new system in a series of
predetermined steps
• This can be achieved in several different ways along the following four key dimensions:
• By business functions/ module
• By locations/geography
• By size and value of transactions (e.g. in case of e-procurement high-value procurements
can be run through the system for testing..)
• By category of users
Phased Rollout – by functions/module Phased rollout by geography
• Based on the service prioritization • The applications/services are implemented
approach in a small number of locations first
• High value and low complexity • Aimed at testing the functionality of the
services/functions are implemented first system/services in the field/real life
to gain maximum benefits from IT environment and to address the gaps
followed by others before it is rolled out to other locations
• Facilitates better utilisation of resources • Commonly adopted approach for large
for e-enabling high-value services… organizations that have presence across
large/multiple number of locations (many
government departments have similar
spread)
Following compares the advantages and disadvantages of phased rollout approach.

• Organizations gain knowledge and • Involves continuous change over an
experience during the initial extended period of time
implementation phase that can be applied
• Duration of the project is much longer than
to subsequent phases
big bang
• Possible to introduce some modules first
• Temporary bridges must be created
without waiting for the entire systems
between legacy system and new system
development phase for all modules to be
considering phased migration of functions
completed
from old system to new system
• With conversion occurring in parts, time is
• Need to maintain sustained interest from
available for adjustments
management and users throughout
• Minimizes impact of gaps/issues identified implementation
in the system (expected to be corrected
• Needs repetition of cycle multiple times.
before rollout)
testing, training….
• Manageable number of issues and
complexities..
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• More time for users to adapt to the new
system
• Technical staff can focus on one part of
the system or a select group of users at
one time – enhanced focus…
• Project members may develop unique
implementation skills that they can be
positioned for in later rollouts
c. Parallel Rollout
• It is a method for transferring between an old (IT) system to a target (IT) system in an
organization.
• In order to reduce risk, the old and new system run simultaneously for some period of time
after which, if the criteria for the new system are met, the old system is disabled.
• Parallel adoption is thought to be the least risky implementation process.
The parallel adoption process cannot be represented without paying attention to the following
steps before the actual conversion, namely the construction of a conversion scenario and the
identification and testing of all the requirements. The activities are divided in three main phases:
• Define implementation strategy: deals with the kind of implementation strategy should
be executed.
• Prepare organization: The organization should be prepared properly according to the
previous phase.
• Conversion: deals with the actual conversion process and closing the conversion process;
proceeding with the new system.
Disadvantages of Parallel Rollout
• Parallel adoption is the most expensive implementation method.
• Having employees enter data in both systems is not efficient.
• Organizations cannot predict cost overruns of big bang, so parallel adoption has become
decreasingly popular because of perceived high costs.
6.2.5. Programme Management Framework

• A well planned programme or project management office with right resources, skills and
infrastructure can substantially improve the likelihood of project success
• Programme management office should consist of cross-functional teams with direct and
strong executive management support
• e-Government implementation efforts are generally distributed as follows :
- 10% technical infrastructure implementation
- 30% software development and system integration
- 50% change management
- 10% Other activities
• Change management should focus on four key people segments - suppliers, business
partners, customers and employees.
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• Programme management should appoint strategic partners for advice and counseling on
technical and business issues.
• Programme management should follow a phased approach with clear deliverables and
regular check-points.
Departments should work towards institutionalizing the programme management
offices/structures into a permanent e-Governance functions/structure within the organization with
exclusive focus on e-Governance & should focus on building capacities for these teams to
takeover programme management functions and roles from private sector in a long term basis.
6.2.6. Funding and Financial Resources
Business models for e-Governance projects are discussed in detail in the later sections
6.2.7. Performance Management Framework (M & E)
M & E framework need and approach for e-Governance projects has been discussed in detail in
later sections.
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7. Government Process Re-engineering (GPR)
7.1. e-Governance and Traditional Approach to e-Governance

Over the past few years the concepts of government and governance have been dramatically
transformed. Not only is this due to increasing pressures and expectations that the way we are
governed should reflect modern methods of efficiency and effectiveness (that governments
should ‘do more for less’ year on year), but also that government should be more open to
democratic accountability.
There is an increased emphasis of usage of ICT in the delivery of public services in a more
efficient and effective manner. But the usage of new technologies goes much further. They are
starting to redefine the landscape of government by changing the relationships (power and
responsibility) between players — between service providers and industry, between the public,
private and third party sectors, and between government and citizen. Hence ICT can make
government transformational – creating and retaining the capacity and capability to innovate
and use technology effectively as technology develops.
It is vital that the process redesign, i.e. the critical analysis and radical redesign of workflows and
processes within and between governmental departments, is undertaken if we are to achieve
breakthrough improvements in performance.
Hence the key to a good BPR is redefining processes to facilitate the citizens / user convenience
Innovativeness: It should think innovatively and come up with solutions rather than replicating
the manual system
Transformational: It should bring about a drastic improvement in the quality of services
provided
Rationalization of Application form and data requirements: Very often the information
asked for in the application is rarely used or is already available with the Government. A good
BPR would question the need of all information sought.
Usage of data available in Government domain efficiently: Very often the information
sought is available in the Government domain. Date of birth is an example of commonly sought
information. This is to be generally supported with a duly attested certificate as proof. This may
be done away with as the Government already has the information through date of Birth records
of the individual. Hence asking for a Birth Certificate is a redundant activity.
Very often there is a misinterpretation of a government rule with a government procedure. At an
operational level, it is often thought that the procedure is the rule. For example let’s say that a
pension is allowed for people above the age of 65.This is a rule. However to prove that a person
is 65 there could be various options available like Class 10th pass certificate, Birth Certificate,
Passport etc. This is a procedure.
In a BPR one has to differentiate between a government rule and a procedure. Very often it is
seen that procedures can be completely revamped through the use of IT. Like in the above case,
these documents are not required if the access to birth data is provided to the concerned officials
requiring this proof.
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GOVERNMENT RULE
Delivery
Citizen
Interface
Interface • Money
Citizen • Application transfer Citizen
Application fee Process • Physical
• Affidavit paper Output
• Attested (ecopy?)
photocopy • ….
• Forms
Technology Support
7.2. Re-engineering defined

The Re-engineering of governmental processes is a necessary condition for the realization of the
benefits of e-Governance. The importance of process redesign to facilitate and ensure best
practices in the realm of e-Governance needs to be emphasized. It is vital that the Process
Redesign involves the critical analysis and radical redesign of workflows and processes within and
between governmental departments to achieve breakthrough improvements in performance.
While deployment of IT solutions increases the efficiency of operations, it will not necessarily
deliver the best results unless the processes are reconfigured to the most appropriate processes
given the demands of the specific circumstances. Otherwise, there is always the threat that
replacement of manual processes by machine-based processes will only lead to “automated”
waste. Process Re-engineering ensures that the processes are redesigned to make them the
most effective and deliver the maximum value to the government, its employees and the last but
not the least the common citizen.
The experience of some of the Governments shows that real crux of convergent/integrated
delivery of public/private services lies in Re-engineering of government/business processes
(40%) and change management (45%) rather than technology including hardware and software
(15%).
“Re-engineering is the fundamental rethinking and radical redesign of business processes to
achieve dramatic improvements in critical, contemporary measures of performance, such as cost,
quality, service, and speed.” —Hammer and Champy, 1993
It is often not possible to wipe the slate clean and start afresh at redesigning a business or
process. Six Sigma’s DMAIC methodology offers a methodology for taking existing processes to
new heights and may include a measure of redesign.
Design for Six Sigma (DFSS) on the other hand offers a methodology that is specifically geared at
creating new processes and offerings.
SIX SIGMA is a structured methodology that can be used to improve the quality of service and
performance. Once we know the actual performance level for any services using six-sigma
methodologies, we can improve that performance level. Following diagrams gives the details on
the two commonly used techniques for improving process using six sigma methodologies:
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DMAIC
Define Measure Analyze Improve Control
DMAIC  Used for improvements in the existing processes

DFSS  Used for new processes to build six sigma right
from the beginning.
DFSS
Design For Six Sigma
Figure 1: Six Sigma Methodologies
Six Sigma brings to BPR the following elements:

 Proven set of statistical tools and methods to eliminate variation
 Data driven design or improvement
 Use of scorecards, dashboards, metrics and baselines
 Stage gating to ensure initial assumptions are valid while maintaining vigilance for changes
 Elimination of waste time, effort or resources
 All efforts are linked back to the ‘Voice of the Customer’, the business strategy and objectives
7.3. BPR (GPR)

Re-engineering is also consistent with the new form of governance that has emerged during the
Information Age—one that favors mission-driven, results-oriented activities. Even with this new
focus, there are some elements of the public sector that will not change and remain challenging
for Re-engineering implementers. For instance, government agencies are subject to greater
political executive management and oversight. Election cycles and administration changes also
affect Re-engineering efforts. In addition, governments cannot revise or depart from their
missions and operations, whereas in the private sector there is much greater discretion to change
business orientations. Legislation, taxpayer accountability, competition for funding and resources,
continuous change, as well as partnerships with international, state, and local governments will
continue to challenge government agencies as they reengineer. Perhaps the most critical
challenge for government lies in the area of risk-taking. Historically the culture of the government
has been to avoid risk. Any successful Re-engineering effort will need to embrace change and
negotiate some degree of risk.
There is a great deal of experience in Business Process Re-engineering. But the government is
not a ‘business’. Because businesses have to perform such Re-engineering of legacy systems, and
because they face similar difficulties, it is tempting to treat government as a large business in the
analysis of the problem. However, government has many drivers and difficulties of context that
businesses do not face: in particular, whereas businesses have the (relatively) straightforward
goal of creating value for shareholders within the law, governments need to meet a wide range
of targets. Government remains distinctive from business for many reasons, including the fact
that government cannot choose its customers and that user of government services take on a
variety of roles, including as voters, taxpayers as well as consumers. Thus, a ‘government
process Re-engineering’ (GPR) approach may be more appropriate, learning from, but also
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informing business (for example in terms of social responsibility), in the context of public, private
and non-profit sector partnerships.
The National Academy of Public Administration, USA, recast the definition of Re-engineering for
government:
“Government business process Re-engineering is a radical improvement approach that critically
examines, rethinks, and redesigns mission product and service processes within a political
environment. It achieves dramatic mission performance gains from multiple customer and
stakeholder perspectives. It is a key part of a process management approach for optimal
performance that continually evaluates, adjusts or removes processes.” —NAPA, 1995
It has been argued that government activities are often policy generators or oversight
mechanisms that appear to add no value, yet cannot be eliminated. The concept of
Re-engineering in the public sector is challenged on some of these premises. However,
government only differs from the commercial sector because it has different kinds of controls and
customers. It still utilizes a set of processes aimed at providing services and products to its
customers.
It is evident that Government Process Re-engineering (GPR) is one of the essentials to bring
about transparency in government working, reducing bureaucratic controls, increasing efficiency
and productivity, reducing cost of service delivery. A GPR approach must rest upon a longer-term
and more enlightened vision. This aims for a re-balancing of the ‘front’ and ‘back’ offices, as part
of a gradual and deliberate policy to move resources and re-train staff from a more efficient and
streamlined administration to direct citizen contact and service.
Figure 2: Re-balancing e-Government
Source: e-Government-An Overview, JANUS, February 2003
ICT can support and enhance quality improvements to government services delivered in tradition,
such as health, education and social care. It is important that the technology does not replace
frontline staff when this would lead to a more impersonal, lower quality service, but rather
directly supports such staff by improving the quality of the services they deliver and by making
them more responsive to citizen needs. Rather than a technology-driven approach, it is important
to let people do what people do best and the technology do what it does best. Indeed, Alan
Mather, of the UK’s eEnvoy Office had once said ‘e-Government isn’t any different from
government. It just might make it better, sooner.’
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Symptoms of Poor governance

Poor governance can be identified by signs of
 Air of mystification about procedures
 Long queues at delivery points
 Multiple visits to government offices
 Pillar-to-Post
 Outcome is in suspense
 OK or NOT OK !
 Gatekeepers at every turn
 Poor quality of service
 Service is a mercy - not a right
 Too many intermediaries, shortcuts
 Extensive information exchange, data redundancy and re-keying
 Huge inventory, buffers and other assets
 Too many controls and checks, complexity, exceptions & special cases
7.4. Understanding Business Processes

Every government service is supported by a set of business processes, which provides approach
and guidance to deliver the service. To understand Business Processes and Government
Processes, consider the following definitions:
Process A group of tasks / activities carried out to reach a (desired) outcome

Any set of activities performed by a business that is
 initiated by an event,
Business Process
 transforms information, materials or business commitments,
 produces an output
Any set of activities performed by a Government that is
 initiated by an event, (e.g. Service Request, Event Trigger)
Government
Process  transforms information, materials or business commitments,
 produces an output (delivery of Service to Citizen / Business of
Government)
Government Processes are processes in the government domain. The process environment or a
Business system is a collection of processes that take one or more inputs and create output that
is of value to all stakeholders. Processes and not functions drive an organization. Processes are
the key to satisfying customers and stakeholders.
Accordingly it should be the endeavour for the Government to improve its internal and citizen
service delivery processes.
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7.5. Understanding Service Quality

Service Quality is an important concept to be kept in mind while undertaking GPR initiatives.
Service Quality comprises of the physical Product, the Time taken to deliver it, the Cost of
getting the service, and Customer Experience or Service Delivery. A GPR exercise should
identify the Service Quality Parameters associated with the service being re-engineered, and
strive to improve those parameters.
To illustrate service quality, let us take the example of the Passport Issuance process.
At first glance the only tangible product in Passport
Issuance process is the physical passport itself. There
are various parameters by which the quality of the
physical product can be measured:
 Name & Photo are correct
 Personal information like sex, date of birth,
address etc are correct
 The passport is stamped / signed and is valid
 Physical passport is as expected
 Not torn or damaged (Does not have pages
missing / has correct number of pages)
But for a citizen, the Service Quality is dependent on a lot of other factors apart from the Physical
product. These include a host of factors, including the following:
 Time: time taken for completion of service by the citizen/business, time taken for
delivery of service by the Government
 Cost: Cost incurred in receiving the service by the citizen/business, cost incurred by the
government in delivery of service
 Complexity (illustrative): Number of forms to be filled, amount of information to be
provided, number of offices to be approached etc by the citizen/business
 Transparency: Knowledge on process for delivery of service, delivery timelines, status
of service request to citizen and business
 Citizen Experience: Quality of interactions (courtesy, politeness, treatment) with the
government during service delivery
A holistic process improvement initiative should address all these Service Quality Parameters.
7.6. Business Process Re-engineering (BPR) and GPR

One of the widely accepted definitions1 of BPR is “BPR is fundamental rethinking and radical
redesign of business processes to achieve dramatic improvements in critical, contemporary
measures of performance, such as cost, quality, service and speed”
Government Process Re-engineering (GPR) has evolved from applying Business Process
Re-engineering (BPR) concepts to Government Services. GPR may address all or some of the
service quality attributes identified for the government service.
1
Michael Hammer and James Champy (1993). Re-engineering the Corporation: A Manifesto for Business Revolution,
Harper Business
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GPR enables governments to achieve dramatic improvement of performance and application of IT

on reengineered processes will yield better results for stakeholders, as indicated in the graph
below:
In order to leverage the full advantage of the GPR exercise, suitable IT enablement of the
re-engineered processes should also be undertaken.
7.7. Steps involved in GPR
The various stages in the GPR initiative are depicted above. The first step in the GPR process is
the identification and statement of the problem in the current process scenario. This is followed
by the definition of the vision and objectives of GPR. Before setting out on process
re-engineering, the existing processes should be studied and documented. During this phase,
data is also collected from the different processes, to understand the processes better and to
obtain baseline metrics.
The processes thus documented are analyzed using various tools and methodologies, to identify
improvement opportunities. This will include identification of value adding / non value adding
activities, process complexity and process metrics.
During the re-engineering phase, the new processes are designed based on the process
re-design drivers. This may involve rework, redesign, outsourcing or replacing of processes / sub
processes. The new processes thus defined are implemented, with IT enablement (in most
cases). The implementation phase may require changes in the legal framework governing the
processes, and change management efforts to smoothen the roll-out.
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Stage 1:
Problem Identification and Definition
• Analysis of citizen grievances & complaints and pro-active Voice of Customer surveys
• Analysis of issues raised
• Identification of problem and defining unambiguous problem statements
Stage 2:
Define vision and objectives for GPR
• Analyse services portfolio and undertake service prioritisation exercise
• Define vision for GPR, from problems identified, service priority
• Define measurable objectives for the GPR exercise
Stage 3:
Process Study and Documentation
• Study process flow, actors, policies, process stages
• Documenting as-is processes and creating Process Maps
• Recording time and other data elements for each process step
• Validation of process documentation from dept.
• Identify and classify PIEs for the processes
Stage 4:
• Root cause analysis of process issues and identification of root causes
• Analyzing process efficiency - Value Adding and Non Value Adding steps
• Analyzing process complexity – Data entry points, Hands off points etc
• Definition of key metrics and arriving at baseline indicators (TAT, error rate etc)
Stage 5:
• Elimination or automation of Non Value Adding / redundant activities
• Identification of solutions (re-engineered process)
• Evaluation and selection of best solution
• Definition of To-be processes based on the evaluation
• Finalization of To-be processes with department
• Setting of target KPIs
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Stage 6:
Process implementation / IT enablement & validation
• Implementation of re-engineered processes
• Implementation of IT system to handle re-engineered process flow
• Putting in place mechanisms to monitor KPIs and continuous improvement
• Change Management, Legal Framework changes etc
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8. Change Management and Capacity Building in e-Governance

Projects
8.1. Change Management

The implementation of e-Governance programs brings
along drastic changes in the routine functioning of day to
day government. The delivery of Government services
through the electronic media including EDI, Internet and
other IT based technologies would necessitate procedural
and legal changes in the decision and delivery making
processes. It demands fundamental changes in
Government decision management. There are changes in
the processes, reporting structure, delegation of powers,
administrative set-up, roles and responsibilities of the
employees etc. The employees need to be delegated more authority. De-layering of the decision-
making levels leads to Re-engineering and appropriate sizing of the decision-making machinery.
All the changes in the system may not be welcomed by the stakeholders. These changes need
not only be accepted by the government and citizens but also be accepted by various interests
groups like employees unions. Under such circumstances bringing in a change will involve
changing the mindsets of the people, and a complete Re-engineering process needs to be carried
out for the same. Hence, implementation of e-Government programs necessitates change
management. Change management is the methodology that integrates change and the ability to
adapt into the organization. It is an organized, systematic application of the knowledge, tools,
and resources of change that provides organizations with a key process to achieve their basic
business strategy. This will involve training of the personnel at all levels, more so, at the lower
rung of government management organizations.
e-Government Implementation is complex for the following reasons.
• Inherent difficulties
 Long implementation
 Underestimation of effort
 Benefits accrue in the end whereas effort required upfront
• Large number of stake holders
 Who are the drivers: consultants, departments, ICT authority, partner
 Degree of support from top management for investment and involvement in
implementation
• Design issues
 Processes consistent and transparent versus flexibility
 Integrating with legacy systems
 Technical performance
 Privacy, security and standardization
• Management of change
 Extent of process reform
 Varying comfort level with IT/screens
The implementation of e-Government projects leads to a cultural shift for the government
officials.
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Traditional model e-Governance model
A Civil Servant provides services mainly Tracking quality of services

because of personal dedication. enables to reward personal
Jobs are secure. dedication.
Only gross violation can really be Promotions are linked to:
“accounted” and handled. Promotions are o “Maturity”
linked to: o New skills learned and
o “Maturity” applied
o New skills learned o Personal capacity and
o Office Politics creativity(Office Politics)
Good service cannot be accounted and New Technologies are
therefore cannot be rewarded. opportunities THANKS to the new
New Technologies are threatening BECAUSE revenue streams created
of the new efficiencies.
A reluctance or inability to manage change properly is often one of the key reasons for the failure
of e-Governance projects. The discipline of change management identifies and addresses the
human resources and organizational factors that can drive or obstruct change. Prof. Norman
Archer has developed a simple but comprehensive methodology for analyzing change
management. According to Dr. Archer: "an evolving Environment creates Change Drivers that
impact the Organisation”. Management determines how to respond to these drivers. A Change
Strategy is selected, along with Tools and Methodologies, for implementing the proposed
organisational changes. It is critical to be able to Measure and Evaluate the impact of change on
the organisation, so an initial snapshot of the organisation is taken. During and after
implementing changes, the organisational impact must again be evaluated to determine whether
it has been successful. Continuing adjustments may be required to tune the organisation."
8.1.1. Change Management defined
Change management is the methodology that integrates change and the ability to adapt into the
organization. It is an organized, systematic application of the knowledge, tools, and resources of
change that provides organizations with a key process to achieve their basic business strategy.
Organizations manage change to:
Identify patterns and structures of change in order to control them
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Predict issues and problems in each stage in order to accelerate change and minimize pain
An alternative definition is
“…systematic identification and management of activities that enable an organization in transition
from its current state to a desired future state. These activities include communication,
stakeholder engagement, transition management, training as well as evaluation of change
readiness and change acceptance.”
One of the most common starting points for applying change management is seen to be after the
project has been conceptualized, designed and implementation has begun. Change management
is often added after the project begins to experience problems. In reality, in most of the
e-Government projects we see that change management processes are initiated only after the
project implementation has started. This initiative again is mostly not taken with a holistic
understanding of change management, and is taken as a reactive measure rather than pro-active
measure. The present CMF may be used at any of the entry points of the project; however it is
most effective to address the change management issues at a high level during the project
feasibility and conceptualization study. Secondly, the change management process activities
should be included as part of the project plan. Thirdly, it could [should?] be developed by an in
house team having the required level of competency, and recommended to be facilitated by an
external consultant team. Achieving successful change management with e-Governance requires
you to use both individual and organizational change management approaches.
People reaction to change can be summarized in the following figure:
Key components of successful change management are:

 Leadership;
 Focused and coherent strategy, including defined objectives and implementation plans;
 Buy-In from stakeholders, which includes
o Consultation;
o Incentives;
o Training; and
o Monitoring and evaluation.
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8.1.2. ADKAR" - a model for Change Management

ADKAR is a goal-oriented change management model that allows change management teams to
focus their activities on specific business results. The model was initially used as a tool for
determining if change management activities like communications and training were having the
desired results during organizational change. The model has its origins in aligning traditional
change management activities to a given result or goal.
The model was initially used as a tool for determining if change management activities like
communications and training were able to obtain the desired results during organizational
change. The model has its origins in aligning traditional change management activities to a given
result or goal. As a project manager, the participants can use this model to identify gaps in their
change management process and to provide effective coaching for their employees.
The ADKAR model can be used to:
 diagnose employee resistance to change
 help employees transition through the change process
 create a successful action plan for personal and professional advancement during change
 develop a change management plan for employees
The ADKAR model has the ability to identify why changes are not working and help you take the
necessary steps to make the change successful. You will be able to break down the change into
parts, understand where the change is failing and address that impact point
The ADKAR model works on the premises that change is a two dimensional process viz. Business
dimension of change and People dimension of change. Successful change happens when both
dimensions of change occur simultaneously.
8.1.3. Key Principles for Change Management design

The following factors must be considered while designing change management plan.
• Design compensatory benefits for real losses due to change for employees. Communicate
positives and negatives honestly
• Ensure organization climate is right
 Shared values with advocates of change
 Participative design
 Quality of work life, job satisfaction as explicit objectives
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 Training and education

• Ensure all stakeholders understand
 Expected pay off
 Role of stakeholders & others in terms of new tasks, skills, training
 Counseling service, feedback on understanding
• Organisation to manage change
 Identify champions and legitimize role
 Project team, command structure
• Identity obstacles to change in advance of implementation
 Financial, technical, organisational, social, anti- champions
• Determine implementation strategy staged/phased, incentive structure
Organizational dimension of change
The business dimension of change includes the typical project elements.
 Business need or opportunity is identified.
 Project is defined (scope and objectives).
 Business solution is designed (new processes, systems and organizational structure).
 New processes and systems are developed.
 Solution is implemented into the organization.
These are the standard elements of a business change that managers feel most comfortable
managing
People dimension of change
Research shows that problems with the people dimension of change are the most commonly
cited reasons for project failures. In a study with 248 companies, effective change management
with employees was listed as one of the top-three overall success factors for the project. Helping
managers be effective sponsors of change was considered the most critical success factor overall.
Effective management of the people dimension of change requires managing five key goals that
form the basis of the ADKAR model:
 Awareness of the need to change
 Desire to participate and support the change
 Knowledge of how to change (and what the change looks like)
 Ability to implement the change on a day-to-day basis
 Reinforcement to keep the change in place
8.1.4. Communication in Change Management
There are five key principles of Effective Communication:
Principle #1: Organisational Change cannot occur without communication
Principle #2: Communication is not a single step or component of a change process - it must
occur in parallel, fully integrated with the change process
Principle #3: Communication strategic planning entails more than selecting ingredients or
tactics according to a cookbook or recipe
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Principle #4: Communication is not something done to a target audience, like turning on a fire
hose of words. Effective communication is a two-way process, focused on dialog
Principle #5: Communication professionals apply the rigorous planning process, including
assessing stakeholder needs, creating and coaching message delivery, and building feedback
loops
Some of the errors in change communication are:
• No clear identification of key stakeholders/audiences
• Failure to listen to stakeholders (attitudes, concerns, information needs, suggestions)
• Insufficient faith in stakeholders’ ability to handle “bad news”
• Lack of candor
• Concentration on the “what” at the expense of the “why”
• Failure to analyse communication processes/channels internally and externally (what works
and what does not)
• Over-reliance on established media
• No high-level, strategic accountability for communication
• No clear spokesperson/spokespeople
• Failure to define consistent “major messages” for all stakeholders
• Focus only on initial announcement and end results - rather than on continuous information
sharing and reinforcement
• Lack of predictability (communication frequency and channels)
• Belief that confidential information will stay secret
8.1.5. Key Reasons for Failures in Change Initiatives
In-spite of all planning, sometimes a change initiative may fail. The reasons for failure may be
within control of the Project leadership team or beyond its control. However, being aware of at
least potential causes of failure, which are within the control, is a pre-requisite for successful
change management. Following are some of the reasons for failure of a project:
 No prioritization: Every activity is given equal importance and priority. All or most of the
activities are taken up simultaneously, making the change process complex and
unmanageable.
 Voice of customer is absent: The objectives of the change do not take into account the
requirements of the customers. Customers are either not consulted or their needs are
ignored or their requirements are misunderstood.
 Employees are not involved: Little or no involvement of employees in the implementation
of the project finally becomes a major impediment to the change initiative.
 Benefits at individual level are not demonstrated: The project may aim to provide
signification benefits at Organizational level. However, for the individuals involved
(employees, citizens, etc.), there may not be any clearly perceivable benefits. Such a
situation creates resistance to change, finally leading to project failure.
 No urgency is created for Change: This aspect is often overlooked. People generally tend
to remain in the ‘As-Is’ situation and resist any attempt to change. In case of ILIS, the efforts
to create ‘urgency’ for ‘change’ has to be directly proportionate to the complexity of the
Project.
 Continuity of team not ensured: Many e-Governance projects suffer due to changes in
the project leadership and management teams. When new members come on board, there is
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whole lot of things to be learnt about the project activities, risks, etc. This takes its own time
and slows down the project progress. Lack of continuity in project team also deprives the
project of the key benefits that come with experience.
8.2. Overview of Approach for Change Management

This section discusses overview of approach for managing the change in e-Governance projects
implementation. Change management is the process, tools and techniques to manage the
people-side of business change to achieve the required business / organisational outcome, and to
realize that business change effectively within the social infrastructure of the workplace. The
Change Management in e-Governance projects implementations focuses along three key
dimensions. These are:
Essential Elements of Change Management
Stakeholder Make sure all stakeholders are identified, relationships are managed;
Management stakeholders get information about progress, programme needs, and
benefits tracking, their feedback is received and incorporated in the
programme
Communication Provide planned communication throughout the organization and

Management execute this along effective means and channels. Make sure that
communication reaches the target audience in time and provides just
enough information for that audience so that they are informed on and
excited about the change and effectively implement it
Training Provide training materials, trainers and logistics; ensure the target
audiences are trained in the new ways of working (including data,
processes, systems/tools and governance) just in time and just
enough
Based on these key elements, the diagram presents overview of approach for managing people
change in e-Governance projects implementation and later paragraphs summarizes key activities
performed in each phase of approach.
Approach for Change Management
Phase I: Establishing Foundation for
Phase II: Managing Change Phase III: Sustaining Change
Change
Assess the environment, scale Stakeholder Assessment &

and scope for change Engagement Plan
Define performance metrics
Define the Change
Management Plan Build the Change Management
Team
Documentation, Monitoring and
Identify Key Stakeholders
Evaluation
Conduct Training Needs
Change Readiness Analysis
Assessment – Need & Impact
Corrective Action Plans
Identify the enablers and Develop Training Plan
disablers to change
Development and Implementation of Communication Strategy
Capability and Skill Building
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Stakeholder Management, Communication and Capability Building (Training) cut across the
different phases of the Change Management Framework, which clearly indicates the importance
of these activities in the overall Change management initiative. Following lists key activities at
each phase of the change management approach.
Phase I: Establishing Foundation for Change – Key Activities
o Assessing the Scale of change in terms of number of affected entities, users,
geographical spread, etc.
o Assessing the scope in terms of policy, process, system and structure
o Assessing the existing environment to understand ‘Change Readiness’ and ‘Culture’
Assessments
o Preparing a Change Management Plan
o Identifying the key stakeholders, in terms of people impacted and those capable of
influencing the outcomes of the change initiatives
o Identifying the key enablers and disablers of Change
Phase II: Managing Change – Key Activities
o Assessing the stakeholders for understanding their power, influence, impact and support
in the project
o Mapping of various stakeholders and stakeholder groups
o Building the Change Management Team to make change ‘happen’
o Defining the roles and responsibilities of the members of the Change Team
o Conducting Training Needs Analysis to understand the training objectives
o Prepare the Training Plan for addressing the training needs
Phase III: Sustaining Change – Key Activities
o Identifying the performance metrics for measuring the success of ‘Change’ and cascading
the same to the stakeholders
o Monitoring and evaluating the metrics to measure the change outcome and incorporate
necessary modifications
o Developing a repository / knowledgebase for documentation of the ‘Change’
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8.3. Guiding principles for Change Planning

A Change Management Plan defines the various phases, related activities, tools and mechanisms
for evaluating and tracking the changes and the related deliverables encompassing a Change
Management initiative. Following are the guiding principles for change planning.
Formulate
Change Vision
Monitoring & Assess

Evaluation Environment
Capacity Leadership
Building Engagement
Communication Stakeholder
Strategy & Plan Engagement
Guiding Principles
Guiding Principle 1: • Creating a compelling vision for change is key to implementation of

Formulate Change any Change Management initiative.
Vision
• Vision acts as a bridge between the current state and the desired
future state.
• Vision should be defined and articulated at the onset of a Change
Management initiative.
Guiding Principle 2: • Assess the environmental variables influencing the change process
Assess Environment viz. legal, political, social
for Change
• Assess government’s / department’s history, readiness and capacity
to change
• This Assessment should be carried out in the initial stages of
planning, as it will help in identifying risks and developing a plan to
mitigate them
Guiding Principle 3: • Leadership needs to create, drive and support the change agenda.
Leadership • Leaders must understand the dynamics of change management
Engagement
and need to apply the principles that make change effective
• Leadership engagement to visibly lead the change, set the tone for
change, and reinforce the government’s commitment to the
interventions must be outlined at the planning stage
Guiding Principle 4: • Identify and engage the key stakeholders at the beginning to
Stakeholder minimize the resistance from change and create buy-ins
Engagement • Engage and collaborate with stakeholders affected by the change
as much as possible
Guiding Principle 5: • A targeted approach to developing a communication strategy is

Communication
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Guiding Principles
Strategy and Plan important in e-Governance projects
• Communication strategy should be developed during the Planning
phase of change and needs to be revisited and refined throughout
the change cycle
• Communication needs to be assessed by looking at the why, what,
how, and when of communicating
• Change programme should aim at creating awareness, and gaining
support, involvement and commitment
Guiding Principle 6: • Training of the personnel at all levels is imperative to build capacity
Capacity Building and sustain change in e-Governance projects.
• Identifying key skills required to drive and implement the change
initiative must begin at the planning stage.
• The training plan must be charted out for identified groups and
targeted training must be conducted.
• Few leadership training might be required at the onset to equip the
leaders with the necessary skills to drive the change
Guiding Principle 7: • Define metrics/system to measure progress of the change initiative

Monitoring and – how far have we got, how far do we still need to go?
Evaluation • Monitoring techniques need to be designed by the project team
and cascaded to the key stakeholders.
8.4. General Tools in Change Management

The table below discusses general tools in change management planning and execution
General Tools
Change Readiness • Measures the organizational readiness to change, and

Survey
• Determines the levels of understanding, acceptance and
commitment likely to effect the success of the planned change
An assessment should answer:
• How will people respond to change?
• To what extent will they “own” the change?
• Where might there be pockets of resistance?
• What are the systemic or cultural barriers to effective change
implementation?
• What strategies and methods should be deployed to minimize
resistance, reduce barriers and promote ownership?
Change Management • Meetings emphasizing on exchange of information among a

Workshops usually small number of participants through hands-on exercises
• An Effective tool to facilitate discussions involving change leaders
• Decision makers and their supporting teams in the right mix
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General Tools
• Creating an effective agenda for workshop including Cleary

defined objectives, Flow of the activities in the workshop,
Communicating expectations to the participants and Guidelines for
the moderator/facilitator
Large Scale Interactive • LSIP works on the Philosophy that “If the dissatisfaction of the
Process (LSIP) people is understood, then people are propelled to look at the
vision of the organization. The creative tension between the
dissatisfaction and the future vision helps people in taking the first
steps towards change.”
• LSIP can be used as an effective tool while communicating the
change vision to a large group of stakeholders in relatively short
period of time
Structured Interviews • A structured interview is an interview format where a defined set

of questions are asked from various individuals
• The tool can be used to conduct perception and engagement
surveys in a Change Programme
Principles of designing structured interviews:
• Questions are presented with exactly the same order
• The choice of answers to the questions is fixed (close-

• ended) in advance
• Open-ended questions can also be included but within

• a defined scope
• An interview schedule which lists the wording and

• sequencing of questions
Focus Group • Focus group methodology is one of several tools to generate valid
Discussions information important to the advancement of change programs
across organizations through a group interview technique.
Principles for conducting focus group discussions:
• 10-12 participants from a similar group

• Participants are asked to provide insights on the topic and there is
no fixed response to a particular question –
• People may tell personal stories, revisit an earlier question,
disagree, contradict themselves, and interrupt.
• Facilitator must balance the needs of participants to ‘have their
say’ against the need to stay focused.
• Reporting and analysis is done in words not numbers
Appreciative Inquiry • Appreciative enquiry is a useful and effective approach used for
thinking, seeing, and acting for powerful change in organizations.
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General Tools
• It works on the assumption that whatever you want more of,
already exists in all the organizations and this process allows
change leaders, drivers to discover that.
Approach
• There are a variety of approaches to implementing Appreciative
Inquiry:
o Mass-mobilized interviews
o A large gathering of stakeholders
o Group discussions
• All these approaches involve bringing large, diverse groups of
people together to:
o Visualize the future in a positive way
o Study and build upon the best in the organization /
system.
• Questions:
o Questions are designed to encourage people to tell stories
from their own experience of what works in the
organization / system
o Questions often revolve around what people enjoy about
their aspirations for the Future
• Participants:
o The process begins with a core group setting the focus of
the Inquiry, and developing and testing the appreciative
questions.
o Then the questions are shared with a larger group of
people.
• Time Requirements:
o The interview questions can be developed, tested and
analyzed in a few hours or in a workshop.
o Data from the interviews can be looked at and turned into
information by a few people in the design team
o Everyone can then decide collectively how to best go
forward.
Identifying Key • Identifying the key stakeholders early in any e-Governance project
Stakeholders is important.
• Stakeholders are defined as individuals and groups – internal or
external to an organisation – who are impacted by and capable
of influencing the outcomes of change initiatives.
• Stakeholders are identified by scanning the ecosystem of the
• When identifying key stakeholders, consideration should be given
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General Tools
to:
o Location of the stakeholder: Where are the key
stakeholders located in the organisation’s broad structure.
Government headquarters, state-union level.
o Role in the decision-making process: What role do
these stakeholders have in decision making. Identify
People those influence decisions in a particular situation or
regarding a particular issue, i.e., Those that are most
active in making decisions, taking actions and
communicating and those who will take decisions on the
transformation programme or whose decision making
capacity could impact the success of the transformation
programme.
o Position - Some stakeholders may be identified as
important in particular situations or for particular issue
because of the roles they play and the positions of
influence or power they hold. e-Governance policies are
framed at the highest levels of Government involving
politicians and bureaucrats.
o Membership - Affiliation and membership of a
professional association or special interest group may be
important because they can have influence/power in a
situation e.g., industry bodies or trade unions.
8.5. Change Management

8.5.1. Understanding Environment, scale and scope for change
We discussed in the previous sessions, various environment variables, which exert an impact
upon implementation of e-Governance projects. These variables are categorized as Social,
Political, Legal and Economic variables. For minimizing the impact and resistance from people, it
is vital to understand the scope of change led by the e-Governance projects. Few questions that
need to be answered to understand the scope and scale of change of the e-Governance Projects:
o To what extent will there be changes in the way the Government departments
operate, is structured, or work?
o Will the change require a shift in mindsets and behaviors?
o How many elements (i.e., people, process, structure, and strategy) will be impacted?
o To what extent will the Government organization (i.e., departments, workgroups, the
no. of people, functions, & locations) be affected?
o Who are the key stakeholders and target audiences in the overall change program?
o How much emotional impact will the change have?
a. Understanding Scale of Change in an e-Governance Project
Scale of the ‘change’ refers to entities affected by the change, number of users geographical
spread. Scale of the ‘change’ can be understood through leadership discussions in the
Government and with other key stakeholders.
Scale of change (Indicative factors)
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 Number of employees / stakeholders who will be impacted due to implementation of the

project
 Units across which the proposed system will percolate
b. Understanding Scope of Change in an e-Governance Project
It requires adequate focus and experience to manage peoples’ apprehensions, aspirations and
capacities during e-Governance projects cutting across policy, process, system and structural
elements and that would likely involve physical relocation in addition to the acquisition of new
skills and a change in roles for the workforce. The scope of change in e-Government projects in
general is along policies, processes, systems and structural changes. For effectively managing the
people change, it is critical to gain good understanding of what is the scope of change along
these dimensions. Based on the scope and scale of change, necessary change management
planning can be performed.
8.5.2. Approach for assessing the environment, scale and scope for change
Assessing the environment for change at the onset of any change management exercise is key to
the success. Tools such as Change Readiness Assessment and Culture assessments can be used
for diagnosis. An understanding of the Change Situation can be gained through an enquiry into 5
key areas: (i) Context, (ii) Complexity, (iii) Consequence, (iv) Culture and (v) Capability.
a. Context for change
Context explores the nature and driving forces behind the change initiative. E.g. The purpose of
most of the e-Governance initiatives is to reform the way Government manages and shares
information with external and internal clients. Specifically, to harness ICTs (such as Wide Area
Networks, the Internet, and mobile computing) to transform relations with citizens, businesses
and amongst various arms of Government.
• Predictability: It is important to understand, How certain or clear are the outcomes and
benefits resulting from an e-Governance project? What is the vision of Government and the
Leadership team from the project?
• Urgency: How critical or time-constrained is the project and the need to bring in the desired
change?
• Inherent risk: How serious are the consequences for the organization if the change fails?
b. Complexity
Identifying & Understanding the key variables contributing to the complexity of e-Governance
projects at the onset can be used as a critical guideline while designing the change approach &
strategy.
• Examine the complexity of the problem and predictability of the solutions.
• Also key here is the complexity of the structure of the Government entity and its
interdependencies and interactions with various bodies and its possible impact on successful
change implementation.
• Finally, time and space constraints need to be understood.
c. Consequence
Understanding the levels of resistance is critical for an e-Governance project to create buy-in
from all the stakeholders at a later stage.
• Review of the likely levels of resistance to the proposed changes, on a role by role and unit
by unit basis
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• Review of potential areas of resistance and also the organizational politics especially amongst
the leadership of the organisation
• Understanding the inherent consequences to the individual/organization of either complying
or not complying with the proposed changes.
• Understanding the extent to which the delivery of the benefits of the programme is
dependent on any particular change approach.
d. Culture
Cultural barriers pose the biggest challenge in installing a new system. They exist at employee
level, officers’ level and political level. The need is to create a rich and adaptable culture that
encourages values which opens up the bureaucratic structure of the Government organizations.
Culture looks at norms of behavior in the organisation, including a review of how change has/has
not been implemented successfully in the past.
• Are people focused on detail or the big picture?
• Is there a power and control culture or a culture of empowerment?
• Do people focus more on the task or on the people?
• In case the change effort is on a national scale, assessment of regional cultural differences is
essential
e. Capability
Mostly e-Governance projects start on the assumption that capability is available within the
organisation to deliver such programmes. However, an unrealistic guesstimate can derail the
programme, hence, a systematic approach to understanding current capabilities is important to
design realistic change management strategy. Understand the capabilities (current and required)
to both implement the change and operate sustainably in the new environment.
• Assessing the skills and capabilities of the organizational Leadership to drive the change
process
• Look at available resources and understand other change efforts currently underway in the
Government agency / body.
• The level of commitment of both leaders and front-line staff should also be explored.
8.5.3. Identifying enablers and disablers to change
Identification of enablers and disablers is a an essential element in people change management,
based on which effective stakeholder engagement and management strategy can be developed
to leverage enablers and to address disablers for change. In identifying enablers and disablers for
change, change readiness assessment plays a crucial role. Change Readiness Assessment is a
systematic technique which provides data on organisation’s capability to change and the change
management ‘hot spots’ or risks that will inform the change strategy/plan. The assessment
usually involves a combination of survey and focus group workshops with the following
objectives:
• To understand how well the organisation has delivered change programmes in the past
• To understand current level of confidence in delivering future change
• To understand the gap between current capability and that required going forward
• To define and agree the change management actions to close the gap
It is a stakeholder engagement activity, and entails consultation and involvement of key
stakeholders and members of the front-line. The key objectives of the Change readiness
assessment are:
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1 To assess the readiness and capability of Government and other stakeholders for
change and lay necessary foundations for a successful change programme.
2 To help the Government body / agency in understanding its areas of strengths and
identifying opportunities for development with the objective of creating the transformation
3 To identify and prioritise action points in bringing about the transformation
4 To mobilize the project for the change by involving the sponsors / leaders across
different levels in the process of identifying issues and opportunities.
Change Readiness Assessment program will include following activities:

• Prepare sampling plan to cover stakeholders from various groups
• Develop a Change Readiness Assessment Questionnaire based on the identified change
themes/levers
• Prepare administration plan and deploy various mechanisms such as workshops, e-mail,
online, telephonic discussion, one-to-one meetings etc to collect the inputs of various
workgroups.
• Collect and analyse the data.
Following lists key elements in change readiness assessments followed by overview of each of
element.
Change Readiness To communicate the purpose and context of the Survey to the survey
Workshops population
To share the overview of the objective of the survey with the participants
Communication Note
and request them to fill the survey questionnaire.
Instructions Note To brief respondents on purpose, process and confidentiality
Data Collation To collect and collate the data in a predefined template
To map survey results with the Change Readiness Risk profile and
Risk Profile Review
assess the current state and identify the enablers and disablers
Detailed Analysis and

Action Plan
To identify the focus areas for managing the change
a. Change Readiness Workshops

Change readiness workshops are used to communicate the purpose and context of the Survey to
the survey population. Following are some key insights into change readiness workshops.
• Change readiness workshops aim at sensitizing the employees and other key stakeholders to
the change process and gather their perception.
• It is an effective tool for gathering Top Management perspective and identifying key enablers
and disablers to change
• Identification of change Levers which are imperative for achieving technological change in
the organization
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• Provide insights on e-Governance

b. Communication Note
Communications note is aimed at sharing the overview of the objective of the survey with the
participants and request them to fill the survey questionnaire. Communication note includes:
• Message from the leadership
• Provide basic information around the concept and scope of the e-Governance initiative
• Objective of the Change Readiness assessment survey
• Explain how data will be used
• Assure anonymity and confidentiality
• Outline how the questionnaire needs to be filled
c. Instructions Note
Instructions note is aimed at briefing respondents on purpose, process and confidentiality
including the guidelines for filling the questionnaire. This includes:
Provide candid and honest response to the statements in the questionnaire.
Give first reaction and not spend too much time thinking of each question
Fill in the mandatory sections viz. Designation, rank etc. Name is optional anonymity is guaranteed.
Provide the opinion in the context of your department and your role in the concerned unit/section.
Fill in the circle in the scale that corresponds to the degree of your agreements to the statements
d. Data Collation
To collect and collate the data in a predefined template. Data collection can be done using a
standardized template / questionnaire and can be gathered through workshops, online
administration depending upon the culture of the Government department and technology
availability.
As Is
e. Risk Profile Review
Risk Profile Review is used to map survey results with the Change Readiness Risk profile and
assess the current state and identify the enablers and disablers. Diagram below presents a
sample risk profile. The numbers in the diagram represent priority order for managing change
based on the survey score.
Change Vision
3
2.4
2
2.1 2.1 * Polygons represent levels of Risk
Organization culture Change Strategy
Profile
1
Polygon 1 High Risk
0
Polygon 2 Medium Risk
1.9 2.1 Polygon 3 Low Risk
Communication Capability Change Commitment

2.6
Change Leadership
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f. Analysis of results to identify the enablers and disablers

Survey responses are analyzed by mapping them on the risk profile i.e. high, medium and low
and the analysis is done from various perspectives to capture the gaps, issues and resistance
among various employee groups. Illustrative output of survey analysis results is provided below.
I believe that there is a definite need for IT implementation I understand exactly what will be the practical
right now in my company implication of the ICT implementation
High Risk Medium Risk Low Risk High Risk Medium Risk Low Risk
Secretaries 8.2 Secretaries 8.2
Senior Officials 8.6

Senior Officials 6.95
Junior Officials 8.25

Junior Officials 7
Admin. 9.08 Admin. 6.65

Employees Employees
1 2 3 4 5 6 7 8 9 10
1 2 3 4 5 6 7 8 9 10
The objective of overall change readiness assessment is to identify the change enablers and
disablers. Following lists sample change enablers and disablers.
Change Enablers Change Disablers

• A compelling change vision has been • Stakeholders have fragmented
created and cascaded throughout the understanding of the long term objectives
organization. of the technological change.
• The leadership at all levels, drives • There is lack of structured plan, strategy
continuous communication to explain and direction to guide organization
change purpose response to change.
• Active change management techniques • There is lack of commitment to the
are engaged to generate understanding current change programmes.
and involvement among employees. • There is no visible leadership at functional
• There is an established structured plan in / organizational level which drives change
line with the change vision. • Little or no formal communication outside
• Performance measures are established at the change programme team.
organizational, functional and operational
level.
Based on the identification of risk areas and analysis of the data course of action is determined
for each dimension. E.g. Change Strategy, Change Commitment, Change Leadership,
Communication Capability and Organizational Culture.
8.5.4. Building change team
For successful implementation of e-Governance projects, the project stakeholders need to be
engaged and involved right from the beginning of the project. Following lists some key reasons
for stakeholder engagement and involvement throughout project Lifecycle:
• Determine the level and type of stakeholder activities required to inform, involve and engage
with them.
• Invest the appropriate resources to engage with stakeholders who are ‘critical’
• Make sure that the Stakeholders are aware of their roles and responsibilities in ensuring
success e.g., ICT implementation, the identification and acceptance of the responsibility for
owning and managing the day-to-day aspects of the system and the new ways of working
• Minimize resistance to the programme through stakeholder engagement strategies and
prevent the programme from being derailed
• Build a vision & hunger for success for the programme & generate enthusiasm for the change
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• Identify the extended audience for project communications and the project-related
information that each stakeholder or stakeholder group should receive and with what
frequency;
• Ensure that all of the project dependencies have been identified and their impact understood
• Stakeholder Engagement in an e-Governance programme is an ongoing activity
• Stakeholders may move up and down the map as the project progresses so this work should
be revisited on a regular basis
• List of stakeholders may also change throughout the Lifecycle of the project
For effective stakeholder engagement and involvement, it requires an internal team, apart from
the team of consultant, to support and drive the stakeholder engagement. This team can be
referred as the change team.
A Change Team identified for change management plays a crucial role in implementation of
change, communicating the change and leading the change at various levels of the organization.
Hence, selection and formation of a change team will determine the success and outcome of the
change management. For identifying the change team, it is important to understand the target
stakeholder groups, who need to be managed, communicated and trained throughout the
engagement. Some of the key stakeholders in an e-Governance Project are:
• Individuals such as Secretaries, Head of Ministries, Heads of Directorates;
• Project sponsor, Project manager, Heads of budgeting and spending units in pilot Ministries;
Business process owners; Funding Agencies
• Consultants, Vendor/ Intermediaries
• Divisions, departments or units, employees, user groups, legal entities, or location /
geography (e.g., headquarters, plant, location,
state, country), citizens The influence of each stakeholder
The impact of the project on each
stakeholder or stakeholder group
Impact
All these stakeholders can perceive the same project
or stakeholder group
in different ways depending upon their expectations. Level of

Influence
Stakeholder assessment defines the power,
The level of support required
Support by each stakeholder or
influence, impact on the project and support required

stakeholder group
Stakeholder
from the stakeholders and stakeholder groups. Assessment
Power Actions Actions to be initiated post

The power of each stakeholder assessment
Following parameters are used with a rating scale stakeholder or stakeholder
group;
to assess and map various stakeholder groups in Role
The role of each stakeholder or
organization. stakeholder group
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Low High
Unsure it happen Make it happen
Reaction Support for Change
Stakeholder map groups stakeholders on a matrix to represent how much influence and impact
stakeholders have in current state and how essential their support is in the change program.
High
Stakeholder 2 Stakeholder 3 Stakeholder
High 4
Stakeholder
1
Med
Impact of
Change
Low
Support
Essential
Stakeholder
Desirable
Low 5
Unnecessary
Blockers Indifferent Followers Change Agents Advocates
Degree of Support
Build a Change Champion network

Evolution of e-Governance change champions is essential and critical for handholding the
e-Governance effort in the initial period. They act as catalysts to accelerate acceptance process
among users and to ensure rapid deployment internally, by
• Facilitating acceptance
• Motivating the front end service people
• Create an awareness and curiosity among the users by explaining the benefits
Change Champions can extend the scope of communications for the Programme. They provide
another avenue to communicate with the business and gather valuable feedback from the
business. An ideal change agent in the e-Governance implementation would be:
• a computer savvy person,
• who has power and authority in governmental system, and
• high credibility among service department and user communities.
Building a Change Champion Network that can make change happen:
• Find the right people: The stakeholders analysis will provide inputs for identifying the
change champions for the programme
• Create Trust: To facilitate teamwork among the Change Champions identified
• Develop a common goal: A common understanding of goals will help the team move
in one direction
The change champions organization:
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• Understand and agree with the need to change

• Have credibility and respect within the stakeholders (external / internal)
• Have a sense of urgency about the change
• Are good communicators and motivators
• Have a good understanding of the organisation and it's culture
• Have great listening skills
• Are enthusiastic to represent the change within the organisation
• Are approachable and accessible.
Four key characteristics seem to be essential towards building effective change champions
network. They are:
• Position Power: Are enough key influential players on board?
• Expertise: Are the various points of view, relevant to the task at hand represented in
the network?
• Credibility: Does the network have enough people with good reputation in the
organization / amongst stakeholders?
• Leadership: Does the network include enough proven leaders to be able to drive the
change process?
Roles of a Change Champion
• Change Leaders – Champions the Change vision, Guides, Removes barriers
• Cheerleaders – Educators, facilitators, Play supportive role, Removes barriers
• Program Manager – Plan change process with sponsors, Ensure project team has
necessary skills, training
• Functional Change Experts – Deep subject matter expertise, Coach
• Change Conceptualizers – Facilitate meetings, build creative environment, Integrate
ideas into change design
8.5.5. Develop Change Management Activities
Development of Change Management Activities/Plan focuses on building the framework for the
change implementation, where resources, roles and responsibilities are documented, schedules
are developed based on timeframes and deadlines, and training requirements are identified.
Development of change management activities refer to identifying various activities which are
needed for helping/supporting each stakeholder group for addressing the risks/issues identified in
during the change readiness assessment survey. From this analysis, the approach for addressing
these issues and managing the change for project stakeholders should be developed including
areas such as:
• a phased or staged approach to implementation of proposed e-Governance initiative from
the people perspective as it will involve re-alignment of roles and re-training of the skills
both functionally and behaviorally.
• Defining the associated measurement criteria for the items that will constitute the
successful migration and its acceptance
Once the approach for implementation is defined, the various components of the current and
planned future environments should be analyzed to determine which specific activities/actions are
required to develop a successful migration strategy. For creating a lasting change effect for the
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project implementation, departments need to review and translate following key aspects into
change activities. These would involve:
• New Roles - Creating and strategizing communication on the aspect of changed and
value added roles in line with the requirements of project.
• Changes in Roles/positions/retrenchment/relocation - Creating and strategizing
communication on the aspect of redeployment, retrenchment of employees and approach
for managing the response/reaction from the employees.
• Identifying New Competencies - As current skills may not be sufficient for future
organisation identifying and then communicating the need to raise skills levels across
functions including sensitization to risk management becomes a key change management
activity.
• Facilitating Cultural Change - Creating an advocacy culture across levels becomes
critical in implementation of change programs as word of mouth and informal
communication is key to successful implementation. We would look at the audience and
create mechanisms for change management activities around the requirements from the
aspect of cultural acceptance of change.
• Communication - It is imperative that communication is a dimension inter-woven in
any change program and needs to intersperse and permeate through the entire change
process.
• Recommending transparent HR and related sub-systems - Designing and creating
systems helping people to understand their own skill gaps and therefore being able to
take actions is key to generate buy in into the change program. Activities to align
individual and organizational requirement are key to our change management approach,
as we synthesize processes and systems to delineate non-transparency.
As departments go about designing activities around the above-mentioned requirements on the
change management imperatives, the focus area should be two fold to lead the desired change:
 Inspirational to energize people, align people across levels and to chart a collectively
accepted plan of action till the “go-live” phase.
 Operational to Re-engineer and design key business processes with the aim of
achieving project objectives, to Implement Re-engineered processes and to Design
suitable structure, systems and processes to sustain the change
Based on the above, departments need to identify the stakeholder wise Engagement and Change
Actions/Activities based on the impact assessed for the target stakeholder groups and priority
and sequencing of each change activity identified for the project. These change management
activities are likely to consider, for example, change strategy, engagement and communications,
change leadership, capability development, clarity and understanding of the case for change and
vision.
For each change action/activity, department need to identify the stakeholder responsible for
undertaking the activity and the approach for monitoring the change activity plan and
effectiveness of change activities implemented during the project implementation. Following
outlines key illustrative activities for Change Management.
Activity Description
Align Leadership Facilitate the alignment of leadership relating to the support and
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advocacy of the overall change vision. This alignment shall be completed
during the design phase to ensure leadership’s support during the
execution phase.
Establish Change Leadership should be aware of the change program’s progress,
Program successes and risks so that impending decisions are made with an
Governance appropriate level of knowledge. The right teams must also be mobilized
and empowered to make decisions regarding the change. Change
program governance ensures that the right people are making the best
decisions possible.
Select Appropriate The purpose of this task is to develop a comprehensive understanding of
Methods to Build communication in the organization and to determine and plan the best
Commitment communication methods for the situation/message based on stakeholder
needs and preferences. These comprehensive, detailed plans educate,
involve and inform stakeholders, helping to build acceptance and buy-in
throughout the transition.
Assess Training The purpose of this task is to confirm the impact of the change initiative
Needs and on all stakeholders, assess the training need, and design appropriate
Curriculum Planning curriculum/training plans that will enable end-users to successfully
perform their jobs in the new environment. The training and curriculum
plan should addresses policy, process, and system/tool training as well
as other change management and leadership training as needed.
Involve & Educate It is important for all sponsors and change agents to be knowledgeable
Sponsors and about the change program, as they will be responsible for addressing
Change Agents issues and concerns that may arise throughout the course of the change
initiative. This task involves conducting training programs and
workshops to educate all sponsors, change agents and the appropriate
stakeholders.
Align Organization & Where appropriate, detailed designs and plans for recommended
Culture changes will be produced to support the change effort and integrate with
existing organization design and cultural alignment activities.
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8.6. Training in e-Governance Projects

Implementation of e-Governance projects may require significant changes to the current
capabilities and skill sets of the employees in the organization and it is imperative to address the
gaps between the required and current capabilities and skill sets of employees at various levels in
the organization. Following discusses an overview of Training approach for e-Governance
projects.
8.6.1. Overview of Approach for Training
Table below discusses each of the above activities in summary.

Needs Analysis Needs Analysis focuses on identifying the specific capabilities and skill
sets required for various stakeholder groups in the context of e-
Governance projects implementation. These skill sets including
leadership, managerial, technical, domain, operational and other areas
as relevant to the project. An understanding of the capabilities and skill
sets is crucial to identify the gaps and to plan for bridging these gaps.
The needs analysis will focus on defining the specific Knowledge, Skill
and Attitude development requirements for the target stakeholder
groups.
Gap Assessment Gap assessment focuses on assessing the current capabilities and skill
sets of the people across various levels vis-à-vis the target capabilities
and skill sets needed in the context of e-Governance project
implementation. Development of training plan and strategy will be
performed based on these identified gaps.
Design Solutions For the identified gaps, a training strategy/solution should be developed
to address the Knowledge, Skill and Attitudinal requirements for the
stakeholders. The solution should address the approach for development
of KSA, methods of training, training course framework, detailed training
plan, approach for evaluation of the training, development of training
calendar etc.
Development Development phase includes development of the relevant training
material, training aids, feedback forms, student hand outs, faculty
handouts and other training material as may be needed for conducting
the training.
Delivery Delivery phase includes imparting/conducting the training programmes
for various stakeholder groups as per the training calendar.
Evaluation Evaluation phase includes evaluation of effectiveness of the training
programmes conducted to the stakeholders and improving the approach
and training material based on the specific feedback back provided by
the stakeholders.
8.6.2. Training Needs Assessment
Training Needs Assessment/Analysis (TNA) focuses on identifying these skills/capabilities gaps in
the employees of the organization, which will provide crucial input into development of a training
plan/strategy. Following discusses some key objectives of the Training Needs Analysis (TNA):
• To understand the training audiences & their needs in the context of e-Governance
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• To assess the training needs by role and by training type to address the knowledge and skills
gaps :
 Understand the changes to processes taking effect due to e-Governance adoption
 Identify new technologies (or changes to existing technologies) taking effect
 Assess new skills and behaviors needed to perform work in the new environment
• To identify areas requiring the greatest training focus and prioritizing training activities to
address all critical dependencies
• To understand common training needs required for all stakeholders (internal / external)
• To outline potential skills and training risks to a successful go-live, and recommend mitigating
actions
Following presents scope and overview of approach for conducting the Training Needs
Assessment. Scope of TNA includes:
• Typically the scope of the TNA in an e-Governance project will include all process,
technology, and Skills and Behavioral training, needed to ensure a successful
implementation.
• TNA will cover all the stakeholders who will be impacted by the change
• The TNA will be a key input to designing the training strategy and interventions to ensure
staff are sufficiently skilled to fulfill their roles in the changed environment.
Following summarises the approach for TNA:
1 Define major job and task responsibilities for each stakeholder group / role
Data Collection
2 Identify the training needs (skills and behavioral, technology, process) by stakeholder
/ role
3 Validate & prioritize findings through interviews with process owners and SME’s
4 Analyze data findings and determine logical groupings and sequences of needs Analysis
5 Summarize TNA findings and use results to design training and curriculum
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A typical Training needs analysis output of the TNA includes:
• Understand their role and accountabilities within the new end to end operating process
• Be able to describe the end to end process in the new order and where their role fits into it
• Understand the new measures of performance
Knowledge • Understand the new knowledge management process, how to report information in a user-
& skills
friendly way
needs
• Be aware of the approval process and its dependencies
• Be aware of standardised classification terminology
• Know where to go for further help and guidance on good practise and systems use
• Feel committed to championing end to end implementation of e-Governance Programme

• Be motivated to ‘provide a winning service first time’ to the citizens
Behavioural • Make change stick by beginning to feel convinced that the effective use of new tools and
skills and systems can improve their productivity and result in significant efficiency gains
attitudinal • Follow new and amended process (e.g. incident, problem, change, release management)
needs • Maintain can-do attitude
• Understand the positive impact of sharing knowledge attitude on their roles and on the
organization's overall performance
8.6.3. Assess Current Capabilities

Existing skill levels are assessed amongst the stakeholder groups and skill gap analysis is
conducted based on future requirement from the role. This includes:
• Determine the effectiveness and ability of the organisation’s present staff in completing the
appropriate tasks to the required levels of competence.
• This information can be gained through a range of steps used in isolation or in combination
depending on the size of the organization & the scale of change. e.g.
• self assessment;
• line manager interview;
• stakeholder interviews;
• surveys or questionnaires;
• existing MIS;
• on-job observation; and
• customer feedback.
8.6.4. Compare Current and Target Competency Levels to Identify Gaps
• Identify and document gaps between current & required competency levels
• Record the gaps as potential training requirements
• Evaluate the potential training requirements to identify which are caused by a complete or
partial lack of skills or knowledge and which have other causes. Then:
 List as training requirements, those performance gaps caused by lack of
skills/knowledge; and
 List as issues those performance gaps not caused by lack of skills or knowledge
• Determine in a report possible non-training solutions e.g. changes in reward systems,
amendments to service level agreements, geographic location of function and/or stakeholder
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8.6.5. Identification of Skill Gaps

Identified skill gaps are then categorized as ‘High’, ‘Medium’ and ‘Low’ basis the importance and
priority of the training.
Priority training to address the issues of low capacity to prepare and implement
High
projects and institute the mandated reforms
An important requirement and is assumed to be part of best current practice. Ideally
Medium
this would be reinforced through a development or communications activity.
Peripheral activity or one that can be safely assumed to be core to present practice so
Low should be a behaviour or piece of knowledge that an incumbent is carrying out as part
of everyday activities.
Based on the identified training requirements, Typically the training requirement for various
stakeholder groups are prioritized as below. The table below is for Illustration only, the number
of stakeholders and their categories would vary depending upon the scope and nature of the
project.
Officers / Clerks Project Change Minister

Secretary Team Agents
Training on the end to end process Medium High Low Medium Medium
Training on new performance metrics High High High High Medium
Training on Teamwork High Medium Low Low Low
Knowledge Management Process Medium High Medium Medium NA
e-Governance and Reforms High Medium High High High
IT Tools High High High High Medium
8.6.6. Development of Training Scope and Strategy

The objective of developing a training strategy to focus on the training activity for the
transformation programme and determine the types of training to be conducted for each target
audience. Components of a training strategy framework
• Approach to training
• Design,
• Development,
• Delivery
• Evaluation
The scope defines;
• the type and number of courses to be developed or changed;
• the purpose and the likely number of training sessions required;
• initial assumptions and risks;
• any legislative and regulatory requirements; and
• high level training plan.
The strategy determines;
• the training environment requirements;
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• statement of training principles and the objectives; macro content;

• cost-effective range of delivery methods, e.g. classroom, face to face, e-learning,
• approach to training management & administration;
• any pre-requisites for training; and
• approach to quality assurance.
8.6.7. Developing Implementation Plan
Based on the training scope and strategy, a training plan should be developed including the
specific activities to be conducted for development of course, conducting training, training
calendar etc. Following presents an overview of training plan.
Build Training
Plan & Curriculum
Develop Course
Content
Prepare Trainers Manage Logistics
Deliver Process,
Technology &
Skills/Behavioral Training
Simulations, Process Training Assess findings &
suggest changes
Develop & deliver additional

training as needed
Capture & Resolve

Training-related Issues
8.7. Communications Management

Stakeholder communication is a critical aspect in ensuring stakeholder buy-in and acceptance of
proposed policy, process, system and organizational changes. Communications Management
addresses the need to engage, communicate and management of apprehensions and aspirations
of the people impacted by the proposed process, system and structural changes. Moving to a
new business environment, with changes in the structures, business processes and induction of
automated systems, may put stress on the employees of the organization and other stakeholders,
even when the envisaged outcomes for them are positive. Any major changes or impact to the
current working environment may have severe impact to the people and hence will also impact
overall functioning of government. Considering this, it is critical to communicate and prepare the
employees for the change. Communications Management Plan, should address the specific
communication and engagement needs for each stakeholder group, communication methods,
messages, responsibilities etc.
8.7.1. Assess Stakeholder Engagement & Communication Needs
Stakeholder impact assessment and readiness survey provides key insights into the
communication needs of various stakeholder groups impacted by proposed e-Governance
initiative. In addition, department need to study the current Communication Approach & Methods
adopted in the organization for the ongoing initiatives and need to assess the changes in the
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current approach/methods and to identify additional communications needs and methods for
successful engagement of stakeholders and to receive buy in for proposed project
implementation.
Current state assessment allows to identify what works well and what doesn’t - and what new or
innovative approaches could be used in the future. This will be useful for gaining an
understanding of:
• Who is responsible for internal/external communication? Where are they based?
• Existing communication organisational charts / relationship diagrams
• Method(s) by which communications are developed, reviewed, approved and distributed
• The communication channels used / available. How successful are they? How is this
measured?
• The methods staff / stakeholders use to provide feedback, and how often
• Current perceptions about the effectiveness of communication and why
8.7.2. Develop Stakeholder Engagement & Communication Plan
The stakeholder mapping and readiness assessment, as discussed earlier, provides critical inputs
into the key stakeholders impacted, their role and influence in the e-Governance project. Based
on these inputs, department need to evaluate/define the following for development of a
communications strategy:
• Objectives of communication and engagement of each stakeholder
• Who needs to be communicated with, priorities and level of involvement is needed from each
individual or group
• the key messages and how will they be tailored for each group
• appropriate vehicle for conveying that message
• ways to maintain stakeholder interest in the project / initiative throughout its duration
• ways to listen to the stakeholder response and measurement approach to evaluate response
From these inputs, department will need to map the stakeholders into ‘Know, Think, Feel, Do’
map, which identifies Stakeholder group, what they should know from the e-Governance project,
what the stakeholder group think/feel about the communicated change, what the stakeholder is
required to do to successfully adopt the change.
Once department identifies what different stakeholders need to Know, Think, Feel and Do,
department need to put together a Communication Strategy Framework outlining it will help its
employees to get there. The Framework includes things like Communication objectives, Key
messages, Roles and responsibilities, Guiding principles, Timings, Channels and media, Risks and
Success measures.
For continuously updating and revising the communications and engagement plan is critical for
project implementation and it requires incorporating feedback mechanisms from pilot
phase/communications to make the process effective and inline with requirements on ground.
Department need to define the feedback mechanisms needed, including communication
evaluation survey; running periodic focus groups, working with the local change agents within
the Change Network etc, for updating/refining the communications management plan. We will
develop supporting tools/guidance material for obtaining feedback from stakeholder groups in
this regard.
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8.7.3. Implementation of Engagement & Communication Plan

In this phase, department will need to launch the engagement and communications activities
based on agreed upon stakeholder engagement and communications plan. The specific activities
performed in this stage include:
• Distributing materials via the appropriate channels, including populating a bespoke website
and/or portal;
• Managing communication activities, workshops, town halls and focus groups to deliver or
facilitate face to face communication;
• Implementing feedback and discussion channels and opportunities; and
• Coaching and supporting the Change Network and senior and local line management on their
on-going communications and engagement role.
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9. Business Models for implementation of e-Governance

e-Governance projects based on the objectives and scope would require various investments and
for development of a business model it is imperative to have a clear understanding of the
investments required in a project. Following discusses illustrative costs in various categories of
9.1. Costs in e-Governance Consultancy Projects

Following lists illustrative list of costs related to the consultancy services associated with various
phases of e-Governance projects.
Project Conceptulisation and Design:

Vision &
1. E-Governance Vision and Strategy Development Strategy
2. Process Study, Process Reengineering Development
3. Requirements Definition and System Design

Current State
4. Development Change Management, Capacity Building and Assessment
Communications Strategy
5. Development of Business Model Future State
Definition
6. RFP Development and Bid Process Management Support
Implementation
Systems Development/IT Infrastructure creation Phase: approach and
sourcing
1. Project and Programme Management
2. Software and Data Quality Assurance Develop and
implement T
3. Infrastructure Quality Assurance system
4. Capacity Building, Change Management and Communications...
Operate and
sustain
Project Operations Phase:
1. SLA Audits
2. Monitoring and Evaluation
3. Capacity Building, Change Management and Communications...
Project Phases
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9.1.1. Costs in e-Governance Projects – Software Design, Development and

Maintenance
Following lists illustrative list of costs related to the software design, development and
maintenance projects.
One time costs.. Vision &

COTS Software: Strategy
Development
1. System Software for Application Server, Database Server,
Integration Server Current State
2. Application Software for ERPs solutions Assessment
3. Workflow automation, Documentation Management Systems..
Services Cost: Future State
Definition
1. Requirements study and finalization
2. Software Design and Development Implementation
3. ERP Customisation and configuration approach and
sourcing
4. Project Documentation
Develop and
5. Data digitization and migration implement T
system
Recurring Costs:
COTS Software cost: Operate and
sustain
1. AMC for software licenses
Services Cost (recurring):
1. Training and Capacity Building
2. Software maintenance and support, Software change
management, Project documentation.. Project Phases
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9.1.2. Costs in e-Governance Projects – IT Infrastructure creation and maintenance

Following lists illustrative list of costs related to the IT Infrastructure creation and maintenance
projects.
One time costs.. Vision &

Strategy
Data Center and Network Infrastructure (IT and Non-IT): Development
1. Data centre site cost, preparation cost, supporting facilities (power,
cooling, physical security, fire and environmental controls) Current State
2. Computing infrastructure (servers) Assessment
3. Storage Infrastructure (SAN Switches, SAN storage, tape library,
backup solutions.,,) Future State
4. LAN and WAN (Switches, Routers, Modems, VPN) Definition
5. Security (Firewall, IPS/IDS, Antivirus, IDM..)
6. Cabling Implementation
approach and
7. Insurance.. sourcing
End User Computing Infrastructure IT Infrastructure:
Develop and
1. PCs ,Printers, Scanners, LAN, UPS, generators, LAN and power implement T
cabling… system
System Software:
1. Network/Enterprise Management Software, Storage management Operate and
sustain
solution, Server Operating Systems, Antivirus gateway and end client
software, email suite…
Services cost:
1. Requirements assessment, solution design, documentation
2. Installation and configuration
Project Phases
3. Testing and go-live
Recurring costs..
Data Center and Network Infrastructure (IT and Non-IT):
1. AMC/ Warranty for system software and hardware
2. Facilities Management Services
3. IT Infrastructure monitoring and management services
4. Insurance
5. Consumables
6. Leased lines/ISDN – connectivity charges
7. Power, fuel
Please refer to Appendix 1 for illustrative templates to capture the projects costs.
9.2. Revenue opportunities in e-Governance projects

e-Governance initiatives also provide significant opportunity to the government departments in
provision of value added services through new or enhanced service delivery channels to the
customers. The scope of many e-Governance initiatives includes creation of digital
data/information for critical areas such as properties, land records, tax payer records etc and this
data provides significant opportunities for conceptualizing and delivering new services to the
targeted stakeholders. However, usage and providing services using the digital data should be
performed as per the applicable data protection and privacy acts and regulations in the country.
These value added services and new service delivery channels provide revenue generation
opportunities to the government departments, which can support in sustaining the project
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enhancements, operations and maintenance. Following provides illustrative examples of revenue

generation opportunities provided by e-Governance initiatives. Sustain
• Portal registration/subscription charges

• Transaction fees for the online services
• Advertising revenue from the portal
• Advertising revenues from service center
• Fees for delivery of B2C and B2G services through common service centers
• Convenience fees – enhancement in the current fees/charges
Definition of service charges and transaction fees should also ensure that it is convenient to the
service recipient.
9.3. Introduction to the Business Models

A Business Model is the description of the VALUE an Enterprise offers to its Customers, the
financial model of the initiative and the network of Partners & their relationships for creating,
marketing and delivering the value to generate profitable & sustainable revenue streams. The
reasons for considering business model in e-Governance are as follows:
 To define the VALUE Proposition clearly
 To bring about clarity on roles & responsibilities of Government, Stakeholders &
Implementing Agencies
 To ensure sustainability
A Business model, in summary, for a project should address/answer the following
• How much does it cost to create and maintain the project?
• Is the project feasible?
• Who is funding for the Project?
• Who is developing or implementing the project?
• Who is paying for the project?
• What are payment terms?
• Roles and responsibilities of the parties concerned with the business model
• Duration of the contract etc…
9.4. Approach for Development of Business Model

Following presents an overview of approach for development of business model for e-Governance
projects.
3. Identify 5. Risk 6. Define

1. Business Case 2. Feasibility 4 Identify suitable
Financing Options assessment and implementation
Analysis Assessment business model
for the Project mitigation approach
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9.4.1. Step 1: Business Case Analysis

Business case analysis is aimed to:
 Assess the needs of the stakeholder
 Assess the need for the project
 Identify the project objectives and project benefits
 To define the outputs and outcomes of the project
 Assess the learnings from similar implementations in the country and globally…..
 Define the requirements and scope of the project
 in summary, to establish the business case for undertaking the project
Business case establishment for an e-Governance project can typically be performed during
e-Governance vision and strategy development phase during which the specific need and
objectives for an e-Governance initiative are defined.
9.4.2. Step 2: Feasibility Assessment
Feasibility Assessment is carried out in several ways:
• Justification for the project – is addressed through Business Case Analysis
• Technical feasibility of the project – addressed through solution evaluation and benchmarking
with domestic and global experiences in similar context
• Financial feasibility
• Is the planned budget sufficient for the expected investments needed for the project
(creation and maintenance) Or Can the project be undertaken within the available
budgets?
• Are project budget, expected funding (including external funding sources) and revenues
(services charges, transaction fees.) sufficient for project creation and maintenance?
• Is there sufficient market size for the private partner?
• Will this project be profitable for the private partners and will there be sufficient interest
from private partners in the project?
• What should be viability gap funding to address the profit requirements of the private
partners to achieve the minimum/standard Internal Rate of Return…?
• In most e-Governance projects financial feasibility assessment is not performed
• The project costs are estimated and necessary budgetary provisions are made based on
the project cost or project features are modified to suit the budgeted project cost
• Financial feasibility assessment plays key role in
• When a project is expected to provide returns to the government or the
private implementation partner through user/service charges and
• The investments and profits are expected to be realized through the services
delivered through the created project etc…
In assessment of financial feasibility assessment, calculation of Net Present Value (NPV) and
Internal Rate of Return (IRR) plays a crucial role. Following presents a brief overview of NPV and
IRR.
Net Present Value
Generally, the duration of e-Governance projects are for longer periods i.e. approximately 3-5
years and requires continuous investments and cash flows required for the project. Net Present
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Value (NPV) represents the present value of the total project investments and cash flows
required for the proposed e-Governance project over the entire project period. It works on the
basic principle that a rupee today is worth more than a rupee tomorrow (a million rupees was a
huge amount few years back, probably not of the same value currently). The Net present value
depends upon the forecasted cash flows for the project and opportunity cost of the capital or
expected rate of return. NPV is calculated based on the formula below:
Ct
NPV = ∑-----------
(1+i)t
Ct = Amount of Cash flow (inflow – outflow). General inflow to the government is ‘0’ but for PPP
projects or in case of penalties (not a desirable inflow)
i = discount rate (or rate of return that could be earned on an investment)
t = time of the cash flow (year 1, year 2…)
NPV can be used to:
• To understand the Project Value in current terms with cash outflows spread across years
• To understand how much funding support may be needed for the project
• To assess the risk and rewards of the project
• To verify whether the project is lucrative enough to attract private sector efforts and
investments
• To ensure that project concepts and designs don’t fail in the field due to lack of financial
feasibility…
Internal Rate of Return
Internal Rate of Return refers to the rate of return or discount rate at which Net Present Value
equals to zero. IRR is used to calculate the expected rate of return for the investments required
for creation and maintenance of the project. In general, project is acceptable if IRR is greater
than the opportunity cost of capital.
IRR can be used to:
• To understand the expected rate of returns for the project
• To assess the potential for revenues and profits for the private sector partner
• To facilitate in identifying the viability gap funding or to allow the alternate revenue
channels for private partner
• To ensure reasonable level of returns to private sector – not significantly high and not a
loss making initiative…
Why Calculate NPV and IRR?
• To understand the Project Value in current terms with cash outflows spread across years
• To understand how much funding support may be needed from Government
• To assess the risk and rewards of the project
• To verify whether the project is lucrative enough to attract private sector efforts and
investments
• To ensure that project concepts and designs don’t fail in the field due to lack of financial
feasibility
However, it is critical to understand that, in general, IRR focus for government and private
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sectors vary considering the role of both the parties.

IRR focus for government, in general, focuses on:
• Achieving project objectives
• Economic development
• Social Welfare
• Better access to healthcare and education
• Improved service delivery
• Improved transparency
• Creation of quality infrastructure…
Whereas IRR focus for the private sector is focused on the financial gains and profits from the
investments needed in project creation and maintenance. Based on the NPV and IRR,
Government department can:
• Assess whether the project is financially feasible
• Assess the concessions, subsidies, gap funding, budgetary support or alternate funding
resources needed for ensuring the private sector participation and project sustainability
• Identify the controls to ensure that unreasonably high returns are not accrued to the
private partner – pass on the benefits to the government or end users (citizens.)
9.4.3. Step 3: Identifying Project Financing Option
Before understanding various business models, it is critical to understand various project
financing options for e-Governance projects. These are:
 Public Finance
 Private Finance
 Project Finance
Public Finance
In public finance model, government sponsors the project through budgetary sources or loans
and the project is implemented through an execution contract with the private partner. This is a
conventional process of project implementations by the government where payments are made
to the private partner based on
the quality of the services Execution contract and payments
delivered in the project. to vendor from govt. based on
performance
Execution contract refers to the
contract with the private partner Budgeted Private
stating: amounts contractor
or loans
• Scope of services Government
Implement
• Commercials quoted Repayment of
Budgetary
during the bidding/vendor sources, loans (if any) Service charges
selection processes Lenders/
(if any)
Funding Project
• Payment terms agencies
Users/
• Implementation/delivery taxpayers
schedule for the project
Service
• SLA’s delivery
• And other terms and conditions of the project
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Where applicable, service charges are collected from the users by the government. However, it is
critical to understand that the government is in the business of public service and not in all
e-Government projects, the service charges can be collected by the government. Government
can earn revenue from the service charges, where applicable. This diagram summarises the
public finance option.
Private Finance
In this option, the project is financed by a private body through equity and debt and the revenue
is generated for the private body through the user charges and/ or annuity payments by the
government. Generally, this option is not suitable for capital Intensive projects as private
organization do not like to strain its balance sheet through debt. Two important terms to
understand in private finance are:
• Concession: The agreement between government and the private partner stipulating rights
and responsibilities for the use of public assets.
• Concessionaire: The private partner with whom the government enters into concession
agreement.
Following diagram summarises private finance model.
Project Finance
In project finance model, the project assets and its potential future earnings finance the project.
In this model, generally a Special Purpose Vehicle is created which is legally independent and
Debt financing is the primary source of funding for such projects. The risks are shared by
participation of multiple complementing partners in the SPV and the concession agreement is
signed with the SPV or the Project Company so formed for the project. Following diagram
summarizes the project finance option.
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9.4.4. Step 4: Evaluation of Business Models and Selection of Suitable Business

Models
Following diagram presents various business models for implementation of e-Governance
projects.
Conventional
Outsource
Government Control
PPP
BOO(T)
Risk Transferred to the Private Privatise

Sector
Business Model Key Features
Conventional • Government maintains complete control on the project creation,

execution and assets
• Government funds the project investments for the capital and
operational expenditure during the project tenure
• Government creates/develops the project
• Government Maintains the project including operations and
maintenance of the project
• 100% of the project risk and returns are accrued to government only
Outsource • Government maintains complete control on the project creation,

execution and assets
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Business Model Key Features

• Government funds the project investments for the capital and
operational expenditure during the project tenure
• Government leverages private sector strengths for creation of the
project or maintenance of the project or both
• Risks are allocated to the government and private sector based on the
responsibilities (e.g. government will have the risk of project demand,
the private sector will carry the risk of performance and quality of the
services delivered to the government)
PPP • The government does not need to own infrastructure to deliver

services
• The government retains political responsibility/accountability to deliver
services for the community;
• The government defines the timeframe in which the services must be
delivered; and the quality and quantity of services needed;
• The private sector delivers the services and finances or part finances
the project;
• Government provides the concessions for the private party, if needed
• Private sector remunerated through services charges/transaction
fees/gap funding.
• Risks are allocated between the public and private sectors;
• Various flavors of PPP exist with varying roles and responsibilities of
public and private sectors
BOO(T) • The government retains political responsibility/accountability to deliver

services for the community;
• The government defines the timeframe in which the services must be
delivered; and the quality and quantity of services needed;
• Private entity receives concession from government to finance, design,
construct, implement and operate the project
• Private sector is remunerated through services charges/transaction
fees/gap funding.
• The assets of the project are transferred to the government at the end
of the concession period
Privatise • The responsibility for delivery of services is completely transferred to

the private sector
• The ownership of the project or a business is completely transferred to
the private sector
• Government only regulates the functioning of the private sector
9.4.5. Step 5: Risk assessment and mitigation

Risk assessment is a critical activity in a project implementation and selection of a suitable
business model, which shall identify all the potential risks to the project. All the stakeholders
must be aware of the potential project risks and a clear risk mitigation measures shall be
identified, implemented and monitored throughout the project development and maintenance.
The objective of risk assessment is to identify all the project risks and allocation of project risks
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to the suitable party who is well positioned and capable of managing the risks. Some typical
project risks are surrounding:
• Land acquisition, planning and permissions
• Design
• Construction
• Commissioning
• Latent defects
• Operating performance
• Operating and maintenance costs
• Third party revenue
• Demand (volume)
• Residual value
• Inflation
• Regulatory
• Taxation
• Force Majeure
• Changes in requirement
Once risks are identified, the next step is to identifying the suitable entity to manage or address
the risk. Minimizing the expected cost of risk is crucial for maximizing returns and risks should be
allocated to the party best able to understand and manage them. Key considerations for risk
allocation include:
• Who is best placed to reduce the probability of risk occurring?
• Who is best placed to manage the cost of risk if it does occur?
Table below presents an illustrative risk matrix.

Risk Description Mitigation Allocation
Availability of Possibility that Services  Clear output Private Partner.
services provided by Private specifications.
Partner do not meet  Performance
output specifications of monitoring.
the Institution.  Penalty Deductions
 Payment linked to
performance
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Risk Description Mitigation Allocation

Risk of project Delays, leading to cost Develop implementation Mostly to the private
completion overrun. plan with tasks identified sector. Tasks like
in detail, and monitor at permissions and
sub task level. approvals to be
allocated to the
department
Design risks Possibility that Private  Clear output Private Partner and
Partner’s design may not specifications. the consultant for
achieve required output  Design warranty. independent review
specifications.  Patent and latent
defect liability.
 Third party review
9.4.6. Step 6: Define Implementation Approach

Business model definition shall include a well defined implementation approach, which shall
address the following key areas:
• Project management structure
• Steering Committee structure
• Project Management structure
• Identify the project phases
• Project inception
• Requirement definition
• Design
• Implementation
• Stabilization
• Support
• Identify project milestones in each of the phases
• Define the deliverables for each of the mile stones
• Payment structure
• Payment linked to mile stones
• Budget provisioning
• Financing model
• Year wise allocation of funds
• Resource deployment
• Capacity building
• New recruitments
• Transition from private sector to department
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10. Public Private Partnership (PPP)

The e-Governance affects the lives of people of this world in many ways not only at the macro
level but also at the micro levels. The flow of information of products, people, capital, and ideas
offer great potential for radical improvements in human development, especially if these flows
are enabled by ICT. Therefore, e-Governance has frequently demonstrated their potential for
Public Private Partnership.
Public-private partnership (PPP) has emerged as a viable business model to counter these
factors, apart from improving the economic sustainability of e-Governance projects. PPP
describes a government service or private business venture which is funded and operated
through a partnership of government and one or more private sector companies.
A public private partnership or PPP involves government and private sectors working together to
deliver infrastructure or services that are traditionally provided by government. It involves private
financing, construction and management of key infrastructure with the primary objective of
improving public services.
While there is a need to create PPP deals, these need to be structured to ensure a win – win for
all the stake holders. Sometimes it is also ambiguous whether the proposed PPP contract is,
indeed in the PPP domain or not. PPP essentially implies sharing of risks and rewards of a
venture. The basic features of PPP are:
 PPPs are concerned with services, not assets
 The government does not need to own infrastructure to deliver services
 PPPs are a procurement option, not a novel method of developing public infrastructure
 PPP policy sits alongside other procurement methods – i.e. conventional, outsourcing, leasing
etc.
 Suitable to some public projects, not all projects
 Private partner investing in public infrastructure, and providing related non-core
processes/services to the government or to the community on the government's behalf
 Government retaining responsibility for the delivery of core processes/services, and
 The government and private party working together under long-term arrangements, whereby
the payments to the private sector party depend upon its continuing to deliver the specified
services to the agreed performance standards. Failure to meet these standards results in the
private partner not being paid
10.1. The Rationale for PPP

Governments decide on private sector participation with the following objectives:
 Possibility of cost-sharing projects, with a possible Return on investment for the private
sector
 To bring technical and managerial expertise with technological developments in the new
sector
 To improve economic efficiency in the sector in both operating performance and the use of
capital investment
 To bring in large scale investment in the sector
 Private sector has invaluable expertise that can be tapped by government in the areas of
customer satisfaction, work productivity gains, and personnel efficiency.
 Possibility of technology transfer from the private to the public sector.
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 While private sector participation will help in improving technical and managerial capacity, it
will be effective only if the government chooses the appropriate form of PPP option and also
supplements it with regulatory mechanisms.
10.2. PPP Benefits

10.2.1. PPP Benefits to Citizens
Some of the benefits which accrue as a result of the PPP model are:
 Easy access to services
 Single window/one-stop shop
 24x7 convenience
 Flexibility in the choice of access methods and devices
 Saving of indirect cost and hardship
 Unity of responsibility leading to improved delivery of public services
10.2.2. Benefits to Government
 Allowing the government to concentrate on what it is good at
 Minimizing financial outgo
 Better liquidity
 Protection against technology obsolescence
 Speedier implementation of e-Governance projects
 Efficiencies in management and better exploitation of government assets, data
 Reduced Lifecycle costs of a project;
 Quantifying more accurately the costs of service delivery;
 Reduced risk of cost overruns;
 Increased revenues;
 Defining the scope and standards of service required, with timescales for development
 Maintaining a small government and a lean civil service;
 Spreading the government’s capital works expenditure over the life of a project;
10.2.3. Benefits to Private Sector Partner
 Reliable streams of revenue
 Low risk
 Creation of employment in the development, implementation and delivery
 Capturing business from related sectors (wider market initiatives)
 Invoking private sector skills, experience, access to technology, and innovation
10.3. Key design principles for PPP

The following are the key principles that are important in defining government’s relationship with
the private sector in ways that are mutually beneficial.
 Respect “Return on Investment” (or ROI).For companies, this primarily means revenues. For
government, this means efficient, reliable, robust services (and perhaps a share of
revenues), and increased legitimacy and trust from citizens. For officials, this means receiving
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training, as well as professional opportunities and rewards for successful adoption of new
procedures, work practices and responsibilities. ROI for officials is important as this will
minimize “brain drain” from officials leaving government to join the private sector.
 Minimizing “brain drain” requires planning. To minimize government staff turnover, it is
important to develop innovative compensation packages and professional perks as incentives.
Government might also want to consider including clauses in contracts with the private sector
that prevent contractors from hiring project staff away from government. Similarly,
government employment contracts might prevent staff from leaving their jobs over a given
period after receiving training or extra education.
 Create realistic business models for e-Governance projects. Companies need to sell
e-Governance projects to their management, just as government needs to “sell” these
projects to the public and to government officials. The partnership can be stronger if there
are people in government who understand how companies work and people in the private
sector who understand the needs of government. A solid, well-designed business plan will
help.
 Find each partner’s strengths. Both business and government need to contribute actively to
the partnership. Companies can be a source of cost-sharing, technology and project
management expertise. Government needs to promote the use of e-Governance among the
public and officials, as well as create a legal framework. It must create incentives to help
local companies grow and become viable partners in e-Governance.
 Develop formal policies on outsourcing. Government must establish clear parameters for
working with the private sector. Outsourcing requires government to use and develop new
types of contracts—with clear benchmarks of performance— that will not only ensure the
delivery of goods and services, but also measure the performance of vendors and the quality
of services received. More important, the bureaucracy needs to be trained on how to
negotiate and draft such contracts.
10.4. Role of Various Partners

A PPP project involves collaboration between various types of private sector companies and the
public agency. The PPP deal should be structured to be mutually beneficial to all the parties
involved, with each party taking on the responsibilities which it is best able to manage. The roles
of the Government and a private sector partner are described for a typical PPP project.
10.4.1. Role of Government in PPP
 Set policy, identify opportunities, and define objectives;
 Decide amongst competing priorities for public resources;
 Ensure transparency and probity in the procurement process;
 Identify needs in terms of output specifications that encourage flexibility and innovation in
the manner of performance;
 Set and ensure the achievement of standards;
 Establish, monitor and enforce the levels of service;
 Ensure value for money is achieved;
 Determine and manage reward mechanisms and tariff structures;
 Identify and propose the allocation of risks;
 Provide a clear regulatory framework and perform regulatory functions; and
 Safeguard the interests of customers and the general public.
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10.4.2. Role of Private Partner

 Achieve defined levels of performance in service delivery;
 Provide expertise and innovation;
 Provide access to private financing, as appropriate; and
 Provide a sufficient return to investors and other stakeholders.
10.5. Options for PPP

Arrangements with the private sector could be either through very simple transactions or through
sophisticated and complex transactions. These options can be classified based on the nature of
responsibility held by the government and the private sector. In some cases, the government
maintains full responsibility of operations, maintenance and service, while in other cases; the
government creates a framework wherein the private sector takes the full responsibility including
investments. Such a framework is essentially created to protect consumers from monopolistic
pricing and enforce standards. The various options are distinguished by the allocation of
responsibility in terms of asset ownership and capital investment between the private and public
sector.
10.5.1. Management Contracts
The government transfers the responsibility of operation and maintenance of its businesses to
the private sector through a Management Contract. The private sector will not be involved in any
capital expenditure. Such contracts are given out for a period of 3-5 years. These are most
effective where the main objective of the government is to rapidly enhance its technical capacity
and its efficiency in performing specific tasks, or to prepare for greater private involvement.
These contracts do not transfer commercial risks of the function assigned to the private operator
and is a first good step for the government towards a full-fledged private sector involvement.
Legally, there is no partnership between the government and private sector in a Management
contract model.
Management contracts could be either very simple or complex. The performance of the private
operator is monitored by the government and in many cases, fees is also linked to the success of
the operation.
More often than not, the success of the operation depends not only on the private operator’s
ability to operate and maintain, but also on the government’s ability to make the resources
available. There is often a fine dividing line between operations and maintenance expenditures,
for which the private operator is responsible, and capital investment, for which the government is
responsible—and both will affect the operator's performance. This option is however not a good
one if a government wants to access private finance for new investments.
10.5.2. ASP Model – Application Service Provider model
The ASP model is an example of PPP where the partnership is quite tenuous. In this model, the
government contracts to avail the services of the partner for delivery of services as per mutually
agreed service levels and commercial terms. The revenue model is typically transaction-based.
The ASP model is suitable to e-Governance initiatives that involve
 A requirement to launch the services in a short time frame.
 The technology is not complex and widely accepted and practiced in the private sector
 The nature of information is not so critical to governance.
Most often the ASP model is useful to leverage the existing ICT infrastructure and management
skills already established by service providers. This creates a win-win situation by enabling the
optimum utilization of ICT by leveraging the infrastructure already set up in the private sector
and thereby reducing the transaction cost to the government/citizen.
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10.5.3. BOOT -Build-Own-Operate-and-Transfer-model

BOOT is an arrangement between the government and the private sector where the private firm
undertakes to build, operate, maintain and later on transfer the asset to the government. In this
model, the selected partner designs, develops and implements the project, most often, entirely at
its cost and operates the system for a pre-specified period.
During the period of the contract, say for 20-30 years, the government will pay a fee to the
private operator. The contract between the BOOT concessionaire and the government is usually
on a take-or-pay basis, thus placing demand risks on the government. Alternatively, the
government and the private sector may arrange to share the risk where the government pays an
additional charge.
10.5.4. BOO Model: Build-Own-Operate Model
In this model, the selected partner designs, develops and implements the project, most often,
entirely at its cost and operates the system for a pre-specified period. The options of the partners
are kept open till the end of the period – also known as the concession period. The revenue
model of the project is either based on transaction charges (paid by the citizen or the
government) or on EQI/EMI (Equated Quarterly Instalment/Equated Monthly Instalment) paid by
the government to the operator/service provider. The revenue model could also be a combination
of a fixed EQI/EMI plus transaction charges.
The BOO model is suitable for projects that involve setting up physical infrastructure like service
Centre(s) for delivering services to the citizens. Good examples are e-Governance projects
relating to issue of driving licenses, registration of vehicles, and provision of integrated services
to citizens across the counter.
10.5.5. JV Model
In this model, an SPV (Special Purpose Vehicle) is formed to undertake the e-Governance project
and /or to provide e-Services. The joint venture can be led by the government or by the private
partner depending upon the strategic nature and sensitivity of the domain.
10.5.6. How to structure and Implement PPP
The following table provides an overview of the process to implement a typical PPP project.
Phase Steps Outcome
Step One : Vision • Identify appropriate projects • Clear vision of the concept
• Prioritize projects
• Include in the budget process
Step Two : Project • Define selected project • Project definition and
Definition • Identify investment requirement preferred PPP structure
• Document transactions and volume
• Define output based requirements
• Undertake an Options analysis
• Select type of PPP
Step Three : Define • Appoint project management team • Dedicated project
project roles and • Development project management management structure in
responsibility plan place, including
• Identify critical decisions transaction advisor
Step Four: Feasibility • Document the costs, benefits and • Analytical framework
study risks inherent in the government- supporting the preferred
funded option. PPP option.
• Address legal/legislative hurdles.
• Consider the opportunities for risk
transfer.
• Identify range of options.
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Phase Steps Outcome

• Approach the market to determine
the nature of the private sector’s
interest.
• Elaborate on the identified options
by incorporating the information
gained from the market.
• Evaluate qualitative impacts, costs,
benefits and risks.
• Conduct quantitative whole-of-life
financial evaluation.
• Develop a Public Sector
Comparator (PSC).
• Ensure that the PSC incorporates
all the efficiencies in service
delivery that could realistically be
achieved for that option.
• Compare PPP option with the PSC
on a value for money basis.
• Demonstrate:
• Affordability.
• Risk transfer.
• Value for money.
• Identify preferred option.
Step Five: RFQ • Prepare Request for Qualifications • RFQ, which is written to
• (RFQ) document. elicit a strong response
• Disseminate to wide audience. from the private market.
• Narrow respondents to short list.
Step Six: RFP & draft • Prepare Request for Proposals • RFP, which is written to
contract (RFP) allow for innovative ideas,
• Disseminate with draft contract from the private sector.
short list.
• Allow scope for innovation in
service delivery.
Step Seven: Select • Evaluating proposals for value for • Private sector partner to
preferred bidder money, share risk and reward.
• Compare to PSC and to each other.
• Perform adequate due diligence.
• Select bidder based upon
evaluation.
Step Eight: Formalize • Negotiate contract with the • Performance-based and
contract selected private sector partner output driven contract.
. • Clarify desired outcomes and
payment mechanism.
• Execute contract.
Step Nine: Commence • Transfer responsibility of operation. • Smooth roll out, as per
project • Allow for implementation of contractual specifications
systems, processes and payment
mechanism.
• Establish project monitoring and
control.
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11. Legal and policy framework for e-Governance implementations
11.1. Legal Aspects of e-Commerce and e-Governance

Ministry of Information Technology, Government of India, defines e-Governance2 as “… the
application of Information Technology to processes of government functioning to bring about a
Simple, Moral, Accountable, Responsive and Transparent governance”. In other words, e-
Governance uses Technology tools in government functioning and service delivery.
Use of Technology in government gives rise to many legal questions, like the validity of electronic
transactions, electronic records and contracts, data protection and privacy etc. These legal
aspects are in turn also relevant to the wider e-Commerce landscape of the country. These
aspects should be addressed in the country’s legal framework, in order to provide the sufficient
legal backing to e-Commerce and e-Governance.
The Legal Framework also includes legislations in the domain, which may need amendments as
part of e-Government roll-out.
11.2. Legal & Regulatory Framework in India

The components of Legal and Regulatory Framework in India for addressing these requirements
is listed below. Each of these components is discussed in further details in subsequent chapters:
 Legislation in Information Technology domain:
o IT Act, 2000
o IT Act Amendments 2008
o Rules under IT Act
 Implication of existing Laws vis-à-vis IT practices:
o Indian Penal Code, Indian Evidence Act, IPR related laws (Copyright, Trademark,
Patent etc)
 Legislation in the domain in which the e-Governance project is undertaken
 Guidelines for e-Governance under National e-Governance Plan (NeGP)
 Specific issues like legal implications of Portal based service delivery
The major legislation in the e-Commerce domain in India is the IT Act, 2000, which overrides
previous legislations, in providing recognition to electronic records, transactions etc at par with
their manual counterparts. The details of the Act are covered in the next section.
11.3. Information Technology Act, 2000

11.3.1. Background on IT Act, 2000
The Information Technology Act came into effect from October 17th, 2000. The Act was framed
on the lines of the UNCITRAL Model Law, and India was the 12th nation in the world to adopt
Cyber Laws.
The Act3 contains 94 Sections segregated into 13 Chapters and 4 Schedules. IT Act 2000 was
amended through the Information Technology Amendment Act, 2008 which came into effect
from October 27, 2009
2
www.mit.gov.in
3
The full text of the Act and other Cyber Laws are available online at http://www.mit.gov.in/content/cyber-laws
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11.3.2. Objectives of IT Act, 2000

The objectives of the IT Act is summarised below:
 Legal Recognition for transactions carried out by means of electronic data interchange
o Digital Signatures and Regulatory Regime for Digital Signatures
o Admissibility of Electronic Documents at par with paper documents
 e-Governance
o Electronic Filing of Documents and e-Payments
 Define Civil wrongs, Offences, punishments
o Investigation, Adjudication of Cyber crimes
o Appellate Regime
 Amend existing Acts to address IT Act provisions
o Indian Penal Code & Indian Evidence Act - 1872
o Banker’s Books Evidence Act – 1891 & Reserve Bank of India Act – 1934
11.3.3. Applicability to the Act
Exceptions of applicability to the Act, is extended to the following:
 a negotiable instrument (Other than a cheque) as defined in section 13 of the Negotiable
Instruments Act, 1881;
 a power-of-attorney as defined in section 1A of the Powers-of-Attorney Act, 1882
 a trust as defined in section 3 of the Indian Trusts Act, 1882
 a will as defined in clause (h) of section 2 of the Indian Succession Act, 1925 including
any other testamentary disposition
 any contract for the sale or conveyance of immovable property or any interest in such
property
 any such class of documents or transactions as may be notified by the Central
Government
The Act applies to the whole of India and also applies to any offence or contravention there
under committed outside India by any person irrespective of his nationality, if such act involves a
computer, computer system or network located in India.
The Act has superseding effect over existing legal provisions. Section 81 of the Act states that
this Act shall have effect notwithstanding anything inconsistent therewith contained in any other
law for the time being in force. Only exceptions provided to the overriding effect are for the
Copyright Act, 1957 or Patents Act, 1970.
11.3.4. Major Components of IT Act
The major areas addressed by the IT Act are listed below:
 Admissibility of electronic records at par with handwritten records
 Attribution, Acknowledgement and Receipt of Electronic Documents
 Authentication of electronic records
 Digital Signatures and Digital Signature Regime
 Cyber crimes and contraventions
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 Amendments to other Acts (Indian Penal Code, Indian Evidence Act)

These areas will be discussed individually in the subsequent sections.
11.3.5. Recognition of electronic records
One of the main requirements of all e-Government and e-Commerce activities is the recognition
of electronic / digital records at par with handwritten records. This recognition is extended by
provisions of Chapter III of IT Act, 2000.
As per the definition provided in IT Act, 2000
"Electronic record" means date, record or date generated, image or sound stored,
received or sent in an electronic form or micro film or computer generated micro fiche”
Section 4 of the IT Act provides legal recognition to electronic records
“If any information is required in printed or written form under any law the Information
provided in electronic form, which is accessible so as to be usable for subsequent use,
shall be deemed to satisfy the requirement of presenting the document in writing or
printed form”
The Act also provides for the use of electronic records in government service delivery. Section 4
of the Act specifies that in cases where:
 the filing of any form, application or any other document with any office, authority, body
or agency owned or controlled by the appropriate Government in a particular manner;
 the issue or grant of any license, permit, sanction or approval by whatever name called
in a particular manner;
 the receipt or payment of money in a particular manner;
Such requirement shall be deemed to have been satisfied:
If such filing, issue, grant, receipt or payment, as the case may be, is effected by means
of such electronic form as may be prescribed by the appropriate Government
These clauses allow for e-filing of documents, issue of certificates / licenses online and
e-Payments, in government scenario. The Law also gives recognition for publication of Rules,
Regulation etc in Electronic Gazette.
In cases where the signature of the individual is required (e.g. signing of application form), such
requirement can be fulfilled by using Digital Signatures. Digital Signature regime is discussed in
detail in a subsequent section.
The Act also provides for the conditions to be met in regard to retention of electronic records.
According to Section 7 of the Act, any law provides that documents, records or information shall
be retained for any specific period, then, that requirement shall be deemed to have been
satisfied if such documents, records or information are retained in the electronic form, if:
 the information contained therein remains accessible so as to be usable for a
subsequent reference;
 the electronic record is retained in the format in which it was originally generated,
sent or received or in a format which can be demonstrated to represent accurately
 the details which will facilitate the identification of the origin, destination, date
and time of dispatch or receipt of such electronic record are available in the
electronic record
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11.3.6. Attribution, Acknowledgement and Receipt of Electronic Documents

In dealing with electronic records, it is essential to have clear guidelines regarding attribution to
an originator of the record. An electronic record can be attributed to the originator:
 if it was sent by the originator himself;
 by a person who had the authority to act on behalf of the originator in respect of that
electronic record; or
 by an information system programmed by or on behalf of the originator to operate
automatically.
Thus, an e-mail sent an individual can be attributed to him / her. Another important concept is
the acknowledgement of receipt by the receiving party. An electronic record can be considered as
received by the addressee:
 If Originator has not specified particular method - Any communication automated or
otherwise from the addressee or conduct from the addressee indicating the receipt of the
record
 If specified that the receipt is necessary, then unless acknowledgement has been
received Electronic Record shall be deemed to have been never sent
 Where acknowledgement is not received within time specified or within reasonable time
the originator may give notice to treat the Electronic record as though never sent
Another legal aspect in electronic transaction is the date, time and place of dispatch and receipt
of electronic records. Following are the provisions in IT Act, specifying the date and time of
dispatch and receipt.
 Unless otherwise agreed dispatch occurs when Electronic Record enters computer
resource outside the control of originator
 If addressee has a designated computer resource, receipt occurs at time Electronic
Record enters the designated computer. If electronic record is sent to a computer
resource of addressee that is not designated, receipt occurs when Electronic Record is
retrieved by addressee
 If no Computer Resource designated - when Electronic Record enters Computer Resource
of Addressee
 Shall be deemed to be dispatched and received where originator has their principal place
of business otherwise at his usual place of residence
11.3.7. IT Act Amendments, 2008
The IT Act, 2000 was amended in 2008 to include additional provisions, and also to correct
certain provisions. The major changes introduced in the IT Act Amendments, 2008 were to:
 To make the Act Technology Neutral:
o Enabling provision added to replace Technology specific “Digital Signatures” to
technology neutral “Electronic Signatures”. Central government to specify
accepted forms of electronic signatures in the Rules
 To enable the IT Act to be easily amendable with advances of Technology
o Exclusion of applicability modified to allow Central Government to change the list
by executive orders (Rules)
 Enabling provision for PPP in e-Governance service delivery
 Provisions for more extensive coverage of Cyber Crimes including Cyber Terrorism
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The changes in the Digital Signature Regime to introduce Electronic Signatures, is discussed in
the next chapter.
A number of provisions were added in the amendments, to facilitate Public Private Partnership in
government service delivery. These provisions include:
 Section 6A(1): The government may, for efficient delivery of services to the public
through electronic means authorize, by order, any service provider to set up, maintain
and upgrade the computerized facilities and perform such other services as it may
specify, by notification in the Official Gazette
 Section 6A(2): The government may authorize any service provider authorized under
6A(1), to collect service charges as prescribed by government, from the person availing
the service
 Section 6A(3): Subject to 6A(2), service charges may be collected, notwithstanding the
fact that there is no express provision under the Act, rule, regulation or notification under
which the service is provided to collect, retain and appropriate e-service charges by the
service providers.
 Section 6A(4): Government shall specify the scale of service charges to be collected, by
notification in the Official Gazette
These provisions are put in place to allow for innovative Business Models for PPP based service
delivery.
11.3.8. Electronic Contracts
The IT Act Amendments provide legal recognition to contracts formed electronically. Section 10A
of the IT Act states that:
“Where in a contract formation, the communication of proposals, the acceptance of
proposals, the revocation of proposals and acceptances, as the case may be, are
expressed in electronic form or by means of an electronic record, such contract shall not
be deemed to be unenforceable solely on the ground that such electronic form or means
was used for that purpose”
This provision, read along with the terms of the Indian Contract Act, 1872 provides recognition to
contracts arrived at by electronic means. As per the Contract Act, the pre-requisites for a
Contract are the following:
 An offer needs to be made
 The offer needs to be accepted
 They has to be lawful consideration
 There has to be intention to create legal relations
 The parties must be competent to contract
 There must be free and genuine consent
 The object of the contract must be lawful
 There must be certainty and possibility of performance
Section 10A allows for all these provisions to be fulfilled electronically.
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11.4. Digital Signature Regime

11.4.1. Introduction to Digital Signatures
Digital / Electronic Signatures are the electronic equivalents of the handwritten signatures.
Handwritten signatures fulfil the criteria that a manually signed document can be attributed to
the individual, as the signature is unique to the person (authenticity, non repudiation and
integrity). There are many electronic signature technologies, which allow signing electronic
records, fulfilling the required criteria.
Recognition to Digital Signatures is provided by Section 3 of the IT Act. According to the section:
 Any subscriber may authenticate an electronic record by affixing his Digital Signature
 The authentication to be affected by use of asymmetric crypto system and hash function
which envelop and transform the initial electronic record into another electronic record
 The private key and the public key are unique to the subscriber and constitute
functioning key pair
 Verification of electronic record possible using public key of the subscriber
Section 5 of the Act establishes equivalence of Digital and Handwritten signature.
The exact type of Digital Signature to be used is not specified in the IT Act. Section 10 of the Act
confers the authority to Central Government to prescribe Digital Signature Regime using Rules
drafted under IT Act, 2000. These powers include the powers to prescribe:
 the type of digital signature;
 the manner and format in which the digital signature shall be affixed;
 the manner or procedure which facilitates identification of the person affixing the digital
signature;
 control processes and procedures to ensure adequate integrity, security and
confidentiality of electronic records or payments;
 any other matter which is necessary to give legal effect to digital signatures.
Accordingly, the following provisions were brought about by the Central Government in the IT
(Certifying Authorities) Rules, 2000:
 “Digital Signature shall be created and verified by cryptography that concerns itself with
transforming electronic record into seemingly unintelligible forms and back again”;
 Public Key Cryptography to be used for creation and verification of Digital Signatures
 Prescribes ITU X.509 version 3 standard of Digital Signatures
 Defines the Digital Signatures Regime including guidelines for Licensed Certifying
Authorities
Thus, Public Key Infrastructure (PKI) was the recommended standard for Digital Signatures in
India as per the IT Act, 2000. The Act also describes the Institutional structures for governing the
Digital Signature Regime.
11.4.2. PKI Based Digital Signature Basics
Public Key Cryptography is a form of cryptography in which each user has a private key and an
associated public key. Distinct public / private key pairs may be used for either signing a message
or for data encryption. Senders sign with their private key and encrypt with the recipient’s public
key. The public and private keys are 2048 bit keys (including algorithm identifier).
The figure below explains what a PKI based Digital Signature is:
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Any message irrespective of its length can be compressed or abridged uniquely into a smaller
length message called the Digest or the Hash. Smallest change in the message will change the
Hash value of the message digest. The hash value is encrypted with the private key of a person
is his digital signature on that e-Document. The following aspects may be noted:
 Digital Signature of a person therefore varies from document to document thus ensuring
authenticity of each word of that document.
 As the public key of the signer is known, anybody can verify the message and the digital
signature
Figure below shows how the digital signature is verified:
The electronic record with the sender’s Digital Signature is received by the addressee. The
addressee can then check the message digest with the digest obtained by using the sender’s
public key. If these two digests match, the addressee can be assured that the document has
been sent by the sender. In case any changes have been made to the document in transit, the
digests won’t match ensuring integrity of the document.
The security services fulfilled by the Digital Signature are the following:
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Service What it means How it is fulfilled

Privacy / Protection against access by unintended By encryption using the
Confidentiality recipients recipient’s Public Key
Authenticity Proof that the sender is actually who he By signing using the sender’s
claims to be Private Key, which can be
verified by the recipient using
Non Repudiation Proof that the sender has actually sent the sender’s public key
the signed message
Integrity Any changes in the original signed
message should be detected
Digital Signatures are also used for encrypting electronic records, as shown below:
In Digital Signature based encryption:

 A sends confidential data to B, knowing that only B can decrypt what is sent
 A encrypts with B’s public key (openly available)
 B decrypts with his own private key (kept secret)
Such encryption finds application in many e-Governance contexts, including encryption of
Commercial Bids in e-Procurement.
11.4.3. PKI Infrastructure
The PKI Infrastructure includes all mechanisms required to securely issue, distribute, and
manage certificate based public keys, form the PKI Infrastructure. These include:
 Certifying Authority Architecture
 Secure Facilities
 Applications
 Policies and Procedures
 People
The PKI hierarchy in India is depicted below:
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As indicated, the PKI hierarchy includes the following players:

Controller of Certifying Authorities (CCA)
 Set up as per IT Act, 2000 to license and regulate the working of Certifying Authorities
 Lay down standards and conditions governing Certifying Authorities and specify various
forms and content of Digital Signature Certificates
 Certifies by the Public Key of the licensed CAs by operating the Root Certifying Authority
of India (RCAI) key
Licensed Certifying Authorities
 Agencies authorised by CCA to issue Digital Signatures Certificates to end users and to
certify the public key of the subscriber
 Must have well defined Identification process before issuing the certificate
 Provides online access to all the certificates issued
 Provides online access to the list of certificates revoked (Certificate Revocation List)
 Displays online the license issued by the Controller
 Must adhere to IT Act/Rules/Regulations and Guidelines
Registration Authorities
 Agencies authorized by CA for operational activities like face to face verification,
registration of certificate information etc
 The RA is subsumed in the CA, and total responsibility for all actions of the RA is vested
on the CA
Subscribers
 End users who apply for Digital Signature Certificates to Licensed CAs
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11.4.4. Classes of Digital Signature Certificates

There are 4 general classes of Digital Signatures, classified as per the level of assurance.
 Class 0: Issued for demonstration / test purpose
 Class 1: Issued to individuals/ private subscribers. This class of subscriber will
authenticate only the username and the e-mail id
 Class 2: Issued to both business persons and private individuals. This class of certificates
confirms the information provided by the subscriber
 Class 3: Issued to individuals as well as organizations. This class of certificate is used in
the e-Commerce application wherein high assurance of certificates is required. This
certificate is issued to an individual only on their personal appearance before the CA
11.4.5. Electronic Signatures – IT Act Amendments
The PKI based Digital Signature Regime specified in the IT Act, 2000 is not Technology neutral
and hence is against the recommendations of the UNCITRAL Model Law on Electronic Signatures,
2001. According to UNCITRAL, any electronic signature technology which fulfills the criteria of
equivalence between handwritten and electronic signatures should be admissible, without
prejudice to any particular Technology.
Accordingly, the IT Act Amendments of 2008 provided recognition to other electronic signature
technologies, which are identified by the Central Government. The conditions to be fulfilled for
the reliability of electronic signatures were laid down in the Amendments:
 the signature creation data or the authentication data are, within the context in which
they are used, linked to the signatory or, as the case may be, the authenticator and to
no other person;
 the signature creation data or the authentication data were, at the time of signing, under
the control of the signatory or, as the case may be, the authenticator and of no other
person;
 any alteration to the electronic signature made after affixing such signature is detectable;
 any alteration to the information made after its authentication by electronic signature is
detectable; and
 it fulfils such other conditions which may be prescribed (in Rules)
The Central Government may, by notification in the Official Gazette, add to or omit any electronic
signature or electronic authentication technique and the procedure for affixing such signature
from the Second Schedule. The Central Government may prescribe the procedure for the purpose
of ascertaining whether electronic signature is that of the person by whom it is purported to have
been affixed or authenticated.
As on the current date, no electronic signature technique have been endorsed in Schedule II:
Electronic Signature or Electronic Authentication Technique and Procedure
11.5. Cyber Crime Provisions in IT Act

11.5.1. Introduction to Cyber Crimes
Cybercrime or computer crime refers to any crime that involves a computer and a network,
where the computers may or may not have played an instrumental part in the commission of a
crime.
Some examples of cyber crimes:
 Virus attacks
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 Stealing user credentials

 Credit card frauds
 Cyber pornography
In cyber crime cases, Computer may the role of weapon / target (credit card fraud), tool for the
crime (denial of service attacks) or storage facility for the crime (pornography).
The knowledge of cyber crimes is essential for e-Governance personnel. In many e-Governance
projects, contraventions to Cyber Security and Cyber Crime provisions are common:
 Sharing of passwords
 Sharing of Digital Signature Certificates
 Unintentional use of pirated software / making illegal copies of software
 Using government IT facilities for download of pirated music
In most cases, the contravention is done without understanding the legal implication and
magnitude of the offense. Accordingly, Government personnel and Operators should be educated
about the legal implications of contraventions and offense.
11.5.2. Cyber Crime provisions in the IT Act
A quick snapshot of the cyber crime provisions in the IT Act is given below:
Section 43: Civil Wrongs under IT Act
Certain Civil wrongs are defined in the IT Act, for which the offender shall be liable to pay
damages by way of compensation not exceeding Rupees One crore to the affected party. The
compensation is decided through an adjudication process. These offences include:
 Whoever without permission of owner of the computer
o Secures access to the computer, computer system or network
o Downloads, copies, extracts any data
o Introduces or causes to be introduced any viruses or contaminant
o Damages or causes to be damaged any computer resource
o Destroy, alter, delete, add, modify or rearrange
o Change the format of a file
o Denies or causes denial of access to any authorised computer user
o Disrupts or causes disruption of any computer resource
 Assists any person to do any thing above
o Rogue Websites, Search Engines, Insiders providing vulnerabilities
 Charges the services availed by a person to the account of another person by tampering
or manipulating any computer resource
o Credit card frauds, Internet time thefts
Section 43A was added with Amendments of 2008 to make it mandatory for corporate bodies
handling sensitive personal data (e.g. mail services, banks, insurance companies) to put in place
security practices as prescribed by the Central government. Computer source code was also
brought into ambit of civil wrongs by the amendments of 2008.
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Section 65: Tampering with Source Code

Computer Source Code is the most important asset of software companies. “Computer Source
Code" means the listing of programmes, computer commands, design and layout. According to
Section 65, if anyone knowingly or intentionally conceals, destroys or alters computer source
code, when the computer source code required to be kept or maintained by law, it is punishable
by fine up to Rs 2 lakh and / or imprisonment up to three years.
Section 66: Criminal Offenses
Section 66 was amended with the IT Act Amendments of 2008 to bring more crimes in its
purview. The section is applicable to all contraventions listed in Section 43, when the offense is
done “dishonestly” and “fraudulently”, with penalties for such contraventions increased to Rs. 5
lakh. Certain new Sections were added to clarify and expand the scope of the Act:
 Section 66A: Sending offensive Messages - Applies to any information that is grossly
offensive or menacing or false information. Also covers Cyber Stalking and Phishing.
 Section 66B: Receiving a Stolen Computer Resource - Applies to purchase or trading or
use of stolen computers or mobiles besides information
 Section 66C: Identity Theft - Applies to Password theft, theft of cryptographic key etc
 Section 66D: Cheating by impersonation - Applies to Phishing, Job Frauds etc
 Section 66E: Violation of Privacy - Applies to Video Voyeurism
 Section 66F: Defines Cyber Terrorism and punishment for the same. Offenses under this
section punishable with imprisonment which may extend to imprisonment for life
 Section 66F (A): Act done with the intent to threaten the unity, integrity, security or
sovereignty of India or to strike terror in the people or any section of the people by:
o denying or cause the denial of access to any person authorized to access
computer resource; or
o attempting to penetrate or access a computer resource without authorization or
exceeding authorized access; or
o introducing or causing to introduce any computer contaminant;
 66F (B): Accessing computer resources that is restricted for reasons for the security of
the State or foreign relations, with reasons to believe that such resources so obtained
may be used to cause or likely to cause injury to the interests of the sovereignty and
integrity of India
Section 66A in conjunction with the Indian Penal Code, is used for different criminal offenses, as
listed below:
Scenario Sections violated Liable party
The passwords to an online bank Section 43 & 66 of IT Person who has stolen and misused
account is stolen and fraudulent Act, Section 420 IPC the account details
transfers made
Victim’s e-mail account is hacked Section 43 & 66 of IT Person who has stolen and misused
and used to send malicious Act the account details
content
The contents of a music CD is Section 43 & 66 of IT The seller and buyer of the illegally
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illegally ripped and sold online Act, Section 63 of copied music

Copyright Act
Victim’s e-mail hacked to extort Section 43 & 66 of IT Person who has stolen and misused
money from victim threatening Act, Section 384 of IPC the account details
misuse of confidential information
Section 67: Cyber Pornography

This crime involves publishing or transmitting or causing to be published obscene material in
electronic form. Punishment on first conviction is imprisonment of either description up to 3 years
and fine up to Rs 5 lakh. For subsequent conviction the punishment is imprisonment of either
description up to 5 years and fine up to Rs 10 lakh.
11.5.3. Other Cyber Crime Related Provisions
The Act provides the authority to designated Government agencies to intercept, monitor or
decrypt any information stored in a computer resource, in the cases concerning:
 sovereignty or integrity of India,
 the security of the State,
 friendly relations with foreign States,
 public order or
 preventing incitement for commission of a cognizable offence
The Act also provides Central government, the power to issue directions to block public access of
any information to any computer resource, in cases stated in Section 69.
The Act (Section 79) provides for non liability of Intermediaries (e.g. ISPs, online auction portals
like eBay) for any third party information, data or communication link made available by him, in
certain cases:
 The role of the intermediary is limited to providing a communication system (as in an
online auction system)
 Intermediary does not initiate the transmission, select the receiver, and select or modify
any information in the transmission (as in the case of peer to peer sharing of pirated
music)
Non liability does not apply:
 If the intermediary conspired or abetted in the unlawful act
 The intermediary fails to expeditiously remove or disable access to the material on that
resource (without affecting the evidence to the unlawful act), on acquiring knowledge of
the unlawful act or being notified by appropriate government agency on the act
The Act envisages the Cyber Appellate Tribunal as the appellate body for crimes under the IT
Act, 2000 and its amendments.
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11.6. Applicability of Other Legislations vis-à-vis IT Practices

11.6.1. Indian Penal Code & Indian Evidence Act
IT Act and its amendments does not cover all possible Cyber Crimes. Many Cyber Crimes come
under the Indian Penal Code – with support from relevant provisions of the IT Act. A snapshot of
such crimes covered under IPC is given below:
Crime IPC Section
Sending threatening messages by email Sec 503 IPC
Sending defamatory messages by email Sec 499, 500 IPC
Forgery of electronic records Sec 463, 470, 471 IPC
Bogus websites, cyber frauds Sec 420 IPC
Email spoofing Sec 416, 417, 463 IPC
Web - Jacking Sec. 383 IPC
Criminal breach of trust / Fraud Sec 405, 406, 408, 409 IPC
Destruction of electronic evidence Sec 204, 477 IPC
False electronic evidence Sec.193 IPC
Offences by or against public servant Sec.167,172,173,175 IPC
First Schedule of IT Act, 2000 and Part III of IT Amendment Act, 2008 provides amendments to
the IPC to incorporate electronic records.
The Indian Evidence Act, 1872 was amended to recognize electronic evidence, through Second
Schedule of IT Act, 2000 and Part IV of IT Amendment Act, 2008:
 Section 3 of the Evidence Act amended to take care of admissibility of Electronic Records
as evidence along with the paper based records as part of the documents which can be
produced before the court for inspection.
 Section 47A: “When the Court has to form an opinion as to the digital signature of any
person, the opinion of the Certifying Authority which has issued the Digital Signature
Certificate is a relevant fact”
 Section 67B: Conditions to be fulfilled for admissibility of electronic records as evidence
 Section 73A: The verification of Digital Signature should either be by Controller of CAs or
by any other person using the signer’s public key
The amendments have paved the way for electronic evidence to be admissible in a court of law.
11.6.2. Intellectual Property Related Laws
Intellectual Property is all about Legal Rights to product of thought, creativity and intellectual
effort. IPR Regime is put in place to incentivize innovation, creativity and research expenditure by
facilitating the creator / inventor to have monopoly rights to monetize the output of his
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intellectual efforts. The subject matter of IPR is in many cases intangible: a logo or a trade mark,
exhaust pipes for cars with a new design etc.
A robust IPR regime is essential for an
economy to encourage and sustain
innovation. There are different types of
IPR protection available. These include
the different types as shown in figure:
The major IPR types having an impact
in the e-Governance / IT arena are
Copyrights, Patents and Trademarks.
The Laws governing these IPR types are
the following:
 Copyrights Act, 1957
 Patents Act, 1970
 Trademarks Act, 1999
11.6.3. Copyrights
A Copyright is an Exclusive Right to do or authorize others do certain acts in relation to:
 original literary, dramatic, musical and artistic works;
 cinematograph film; and
 sound recording
The Rights include the rights of reproduction, communication to the public, adaptation and
translation of the work. Copyright exists in expression of an idea and it is not a right in the
novelty of it. Its object is to protect the writer and author from the unlawful reproduction,
plagiarism, piracy, copying and imitation. Violation of the copyright is confined to the form,
manner, arrangement and expression of the idea by the author.
Copyrights are the primary source of protection for computer software in India. The Copyright
Act treats Computer Software as a special case of “literary work” extends the same protection as
applies to other literary works. Copyright protection makes it illegal to make or distribute copies
of copyrighted software without proper or specific authorization (Section 16 of Copyright Act).
Copyright protection assumes significance in the e-Governance context. If a third party Software
Vendor is commissioned to develop Software, the Copyright for the software does not
automatically vest with the commissioning authority, but with the Vendor. In case the
commissioning party intends to obtain the Copyright to the Software, it has to be done through a
formal written deed of assignment. To overcome this limitation, Copyright / IPR assignment
should be formally drafted into the Contract between the Vendor and the Department.
Copyright protection is confined to only to form and expression and not to the underlying idea –
thus protection is only against Software piracy. In Software products, the creative idea behind
the Software may be a more important Intellectual Property than just the source code in many
cases. This is necessarily true for innovations in Software, for which the Owner invests
substantial amount of money. Such innovations are provided extra protection by patents.
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11.6.4. Patents
A patent is an exclusive right granted by a country to the owner of an invention to make, use,
manufacture and market the invention, provided the invention satisfies certain conditions
stipulated in the law. Patents are governed by the Indian Patents Act of 1970 and The Patents
Rules 2003 and amendments thereof.
For applying for a patent, the invention should satisfy certain criteria:
 Novelty
 Inventive Step or non-obviousness
 Utility or Industrial Application
During this period (20 years), the inventor is entitled to exclude anyone else from commercially
exploiting his invention.
Computer Software in not yet covered under the patents regime in India, except for certain sub
set of computer software including embedded software (those software having industrial
application).
11.6.5. Trademarks
Trademarks are governed in India by the Trademarks Act, 1999, which is in accordance with the
TRIPS (Trade Related aspects of Intellectual Property Rights) Agreement, of which India is a
signatory.
“A trademark is a distinctive sign or indicator used by an individual, business organization, or
other legal entity to identify that the products or services to consumers with which the trademark
appears originate from a unique source, and to distinguish its products or services from those of
other entities”
In the Cyber World, Trademark Regulations has implications in the allotment of domain names.
Domain names are website addresses (e.g. www.nisg.org) which map to a particular IP address
(e.g. 64.208.159.11). By using a domain name which is similar to the trademark of another
entity, misunderstanding can be created in the minds of general public on the identity of that
trademark, resulting in trademark infringement.
But a domain name is not itself a trademark, but only an expression of a trademark. A domain
name is a word or phrase registered in the domain name registration system. Whether a word or
phrase used in a domain name qualifies for trademark protection is determined under regular
trademark law.
In India, the domain names which end in “.in” are governed by the .IN Registry set up by DIT.
The disputes regarding domain names in the “.in” domain are resolved in the following manner:
 A Trademark holder (complainant) can file a complaint with the .IN Registry against a
person who has registered a domain name (registrant), on any of the following grounds:
o the Registrant's domain name is identical or confusingly similar to a name,
trademark or service mark in which the Complainant has rights,
o the Registrant has no rights or legitimate interests to the domain name,
o the Registrant's domain name has been registered or is being used in bad faith
 The Complainant can ask for any of the following remedies:
o Cancellation of Registrant’s domain name
o Transfer of domain name to the complainant
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 The .IN Registry appoints an arbitrator, who gives his decision based on Arbitration &
Conciliation Act 1996 and the IDRP (.IN Domain Dispute Resolution Policy) and Rules
The various types of domain name related offenses are the following:
 Cyber squatting is the registration of a domain name by someone who lacks a legitimate
claim with the intent to sell the name, or to prevent the trademark holder from gaining
access to the name, or to divert traffic
E.g. www.whitehouse.com / www.whitehouse.org case
 Typo squatting is the case in which the squatter registers a variant of a famous
trademark
E.g. www.google.com
Though many other countries have separate cyber squatting laws, such cases are handled in
India under the provisions of the Trademarks Act.
11.7. Other Legal Aspects

11.7.1. Portals in e-Governance projects and Legal Implications
Portals are used widely in e-Governance for web enablement of citizen (G2C) and Business (G2B)
services. Portals help achieve the following e-Governance goals:
 Converting department services (rendered at department premises) to self services
(rendered online)
 Anywhere / anytime delivery of government services
 Providing information services of the department
Use of Portals for government service delivery gives rise to many legal considerations, which
should be addressed adequately in order to build trust and confidence in the government portal.
Such Legal considerations for portal based service delivery are addressed through a set of
policies and terms & conditions drafted for each portal:
 Portal Terms & Conditions
 Privacy Policy
 Copyright statement / policy
 Hyper linking Policy
There are certain general principles based on which these policies are prepared for each
e-Government portal. These principles are discussed below:
11.7.2. Portal Terms & Conditions
The Portal Terms & Conditions4 should have clearly defined Terms & Conditions addressing the
following aspects related to portal use:
 Portal ownership details: Who owns the portal
 Usage policy of content:
o The rules and regulations governing the usage of the content provided in the
portal and the transaction services extended by the portal
4
“Guidelines for Indian Government Websites” prepared by NIC, DIT available at http://web.guidelines.gov.in,
provides exhaustive guidelines for e-Government Portals
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o Specific contractual clauses for system usage (e.g: Submission of false

information leads to cancellation of registration or blacklisting (e.g.
e-Procurement, MCA21)
 Legal aspects: Governing law, and which court of law will have jurisdiction in case of
legal disputes arising out of the portal content
 Disclaimers: Disclaiming the contents linked from a non-government website
 Liability and Indemnity: Limitation of Liability for government
 Responsibility towards hyperlinked sites
The Terms & Conditions should be presented to the citizen / business entity (portal user) while
registering for use of portal. Only after agreeing to the Portal Terms & Conditions, should be user
be allowed access to the services rendered through the portal
The Terms & Conditions presented by the portal and agreed to by the portal user, constitute a
valid legal contract between the user and the government (portal owner), as per the provisions
of:
 Clauses of Indian Contract Act, 1872 (pre-requisites for a contract)
 Section 10A of IT Act (contract formation and other pre-requisites of a contract can be
fulfilled through electronic means)
Accordingly the Terms & Conditions have the validity of a legal contract in the court of law in
case of legal disputes arising out of portal usage.
11.7.3. Privacy Policy
Most portals collect personal details / information from users, either during Portal Registration or
during the course of delivery of services (e.g. income tax). Only that information which is
absolutely essential for service delivery should be collected by the Portal.
Portals should have a Privacy Policy, which clearly states:
 The purpose for which the personal data is collected
 Whether the data shall be disclosed to anyone - to whom and for what purpose
 In case the portal handles high risk personal information (credit card, bank details etc),
the safeguards should be mentioned (SSL, Digital Certificates etc)
 Whether cookies (software downloads which collect user’s personal data) will be
transferred to visitor's system, and what is their purpose
The Privacy Policy should be prominently displayed on the Portal and the Portal Terms &
Conditions should refer to the Privacy Policy.
11.7.4. Content Copyright
All content provided in the portal should be backed up with proper Copyright Policy, explaining
the terms and conditions of their usage and reference by others. The copyright policy of the
department may be liberal, moderate or conservative
 Liberal / moderate: Allows reproduction of content without prior permission.
Acknowledgement of source to be provided in case of reproduction. Safeguards against
derogatory use of content.
 Conservative: Content can be reproduced only after prior permission. Specific limitations
for use of content.
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In case of content having third party copyright, all prior permissions should be obtained before
publishing in the government portal.
11.7.5. Hyper-linking Policy
Any other website (external or government) hyperlinked at the government portal may be viewed
by users as having the stamp of approval and confidence of the government. In many cases,
external websites may provide links to the government portals. Therefore, all government portals
should have clear-cut Hyper linking policy which spells out the criteria and guidelines for
providing hyperlinks to external sites
In case of other sites providing hyperlinks to government portal:
 The policy should clearly state whether the external site will have to take prior
permission for providing hyperlinks
 Policy should specify that the hyperlink should open up the government portal in a new
browser page (instead of in a frame within the external site)
In case of providing hyperlinks to other government / non-government sites in the portal:
 The policy should lay down the specific guidelines / criteria for deciding which external
websites can be linked from the portal
 If non-government websites are linked there should be a strong business rationale for
the same (e.g. providing link to the site of Licensed CA in e-Procurement / Income Tax
portal)
 Whenever the user moves to another portal through a hyperlink, an indication shall be
provided to the user on the same
11.7.6. Domain Legislation
In any e-Governance initiative, it is important to back it up with the required legal changes in the
legislation in the domain. Processes are usually derived from the underlying legislation. Many
e-Governance initiatives requires changes to processes, institutional structures etc. Such changes
may require change to the legal framework, to legalize the process changes, and give them
enough legal backing. To understand domain legislations, consider the hierarchy of legislation
given below:
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At the top of the Legal hierarchy is the Constitution. Laws are enacted by Central or State
government depending on whether State / Central subject.
Subordinate legislation enacted by authorities identified under the law. At the lowest level are the
manuals and guidelines, which have only advisory status.
While the laws need ratification by the Parliament / State / UT Legislatures, Subordinate
legislation can be amended by executive orders. Accordingly, the practice followed in legislation
is to delegate the procedural issues to subordinate legislations, while the Laws provide only a
high level direction.
To illustrate an example of domain legislation, the example of MCA21 may be considered. MCA21
was rolled out to enable electronic filing of compliance information by companies. The processes
of Company Registration and Compliance filing were based on the Companies Act, 1956 (and the
Rules made there-under) and the Monopolies and Restrictive Trade Practices Act 1969.
In order to provide legal backing to the initiative, necessary changes were made to the
Companies Act:
 Amendments to mandate Director Identification Number
 Insertion of provisions 610B to 610E to mandate electronic filing
Though most of the e-Governance projects may not require changes to domain legislation,
projects with a Government Process Re-engineering component requires legal changes. This is
because some of the changes that may result from GPR will requires legal changes:
 Organizational Structures change (e.g. change in designated agency to handle a
particular task / process)
 Jurisdictions change (anytime / anywhere services)
 Statutory powers change (who is the authority for delivery of a certain service)
The approach to incorporate changes to the domain legislation is given below:
It is a good practice to conduct Legal compliance audit in large e-Governance projects to ensure
the following legal requirements are fulfilled:
 The project is in compliance with the Legal and Regulatory framework (IT Act, Public
Records Act, Other domain legislation etc)
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 Any changes in the domain laws necessitated by the e-Governance initiative (change in
processes, institutional structures, statutory powers etc) are addressed appropriately
 Sufficient legal backing is available to government, in case of disputes that may arise
11.8. Regulatory Framework under NeGP

National e-Governance Plan (NeGP) provides a holistic approach and direction for e-Governance
Implementation across the country. It follows a program based approach to gain momentum
across the various arms and levels of Government guided by a common vision, strategy and
approach. The Plan was formulated by the Department of Information Technology (DIT) and
Department of Administrative Reforms & Public Grievances (DAR&PG), and approved by the
Union Government in May, 2006.
NeGP implementation poses many challenges:
 Centralized initiative, decentralized implementation
o Implementation of State MMPs are handled by each state individually with
support from the Central government
o Successful implementation in one state can be easily replicated in another, as
underlying processes are similar (e.g. Land Records, Property Registration)
 Different systems will need to interact with each other
o e.g. Registration system and Land Records system
 Aggregation of data across the country from systems;
o e.g. CCTNS, NCRB, SSDG
To overcome these challenges, NeGP has set out certain Guidelines to ensure Standards and
Interoperability is ensured.
The Framework of Standards under NeGP includes the following:
 National Policy on Open Standards
 Localization and Language Technology Standards
o Character Encoding Standards
o Font Standards
 Metadata and Data Standards
 Quality Assurance and Conformance Standards
 Network and Information Security Standards
 Framework of Policies and Guidelines for Common Infrastructure MMPs
o SDC guidelines
o SWAN Guidelines
o CSC policies
 .IN Domain name policies
 Implementation guidelines for other Mission Mode Projects
Though the policies under NeGP have only advisory status, they are important from the point of
view of ensuring Standards and Interoperability.
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National Policy on Open Standards

The national policy on Open Standards was set out by DIT, with the following purpose:
 Sets out guidelines for the consistent, standardized and reliable implementation of e-
Governance solutions.
 Ensure seamless interoperability of various e-Governance solutions developed by multiple
agencies.
 improve the technology choices available and avoid vendor lock-in
The policy is applicable for all systems used in e-Governance, and all standards used in e-
Governance systems, including interfaces and data archival. All legacy systems should ensure
external interfaces adhere to the policy.
The policy envisages selection of a single standard in each technical domain, which complies with
certain mandatory and desirable characteristics. The mechanism for finalizing and implementing
the standards is given below:
 GoI identifies domains for standardization and identifies the authorized agency to select
the standard
 The selected agency shortlists the standards and after extensive consultations, finalizes
the standard
 Once standard is recommended, industry shall be given a definite time for progressive
compliance with the standards, be it for interface or for the entire system.
Once the standard is finalized, all Government IT Systems should comply with the standard
recommended in the particular domain. All Requests for Proposals for e-Governance systems
shall include the guidelines for ensuring compliance to Open Standards.
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12. Procurement in e-Governance
12.1. Introduction to Government Procurement

Government procures goods, works and services which are incidental to government functioning
and delivery of the services to citizens. Accordingly, government procures a large range of items
– from procuring civil works for road construction, health supplies for hospitals, services of IT
providers etc. Public Procurement operates on the backbone of a broad framework of National
laws dealing with relevant aspects of procurement. These laws include:
 Indian Contract Act, 1872;
 Sale of Goods Act, 1930;
 Companies Act, 1956;
 Arbitration & Conciliation Act, 1996;
 Limitation Act, 1963;
 Right to Information Act, 2005
Public Procurement in India is a State subject, and thereby the Regulatory Framework governing
Public Procurement varies from State to State. ‘General Financial Rules’ (GFR), framed by the
central financial ministry acts as the guideline for public procurement, but has only subordinate
legislation status.
Various states have adopted their own Legal framework, based on the GFR and other best
practices. Procurement funded by external donors (World Bank, ADB etc) follows guidelines by
the donor in this regard
Government procurement is based on certain key principles. These include:
 Ensuring Transparency & Accountability in Public Procurement
 Achieving Best Value for Money for the government through efficient procurement and
informed management
 Equal Opportunity to all qualified firms in participating in procurement opportunities and
non discrimination
 Development of indigenous / Local industries (SSI Units)
In this section, we look specifically at the procurement of goods and services in e-Governance
projects.
12.2. Procurement in e-Governance Projects

Procurement in e-Governance projects majorly involves procurement of Information systems.
Procurement of IS poses many unique challenges. Information Systems are highly affected by
changing business objectives, organizational politics, and institutional capacity of the end-user.
They are subject to rapid technological change over the project lifecycle, and also entail mixtures
of professional engineering services and supply of diverse hard and soft technologies. In many
cases, their technical content is diverse and difficult to define.
Procurement in e-Governance projects are even more challenging, due to the following aspects:
 Projects range from straightforward Supply and Installation of products to complex
development, integration and operation of mission-critical Information Systems
 Varied Business Models including Public Private Partnership
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The various stages in the procurement Lifecycle in e-Governance projects are indicated in the
figure below:
During the Business Case phase, the justification for undertaking the project and its feasibility are
explored. The Business Case phase includes the following activities, which usually results in a
Feasibility Study Report and Detailed Project Report (DPR):
 Defining Objectives, Vision and Mission for the initiative
 Study of Best Practices from similar contexts
 Stakeholder Consultations
 Understand cost components for the project
 Detailed analysis of business case
 Business justification for the project (better service levels)
 Cost Benefit Analysis
 Analysis of risks and mitigation measures
In case of transition from existing system / vendor, the analysis of benefits of continuing with the
current arrangement vs. fresh procurement is carried out
12.3. Deciding on Procurement Strategy

The first step in deciding Procurement Strategy is to identify and segregate the project
components. An indicative list of components that can come up in an e-Governance project is
given below:
 ICT Strategy and Consultancy: ICT strategy, defining ICT architecture, ICT security,
RFP preparation for ICT vendor and procurement, contract management, and training
 Applications development / Software implementation: Custom applications
development, deployment of COTS products, Project Management
 Deployment IT Infrastructure: Hosting infrastructure and storage, distributed
infrastructure and LAN servers (desktop, laptops, printers, software licenses, local
servers)
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 Operations and Maintenance: Operations management (operations administration,

database management etc.), service delivery, helpdesk support, facilities management.
 Communications: Communications infrastructure (network connectivity, PABX,
videoconferencing, etc.), voice (fixed and mobile), and data/ISP
In this step the components are logically grouped together and decision is taken on whether they
can be self managed or outsourced. Components which are covered by Infrastructure /
Resources already available components for which departments can build the required internal
resources, and which requires strategic control shall be self managed.
The opportunities for bundling outsourced components are identified, based on the interrelation
between the components and department context. Based on the components to be outsourced,
department can go in for single or multiple vendors.
The implications of having single vendor are:
 Optimum option if all the components for external sourcing can be bundled into one
group
 Suited for smaller agencies and agencies in which ICT is not highly strategic or
customized
 Subcontracting and Consortium arrangements may be used to bring in diverse
capabilities with one single entity taking overall responsibility
 More cost effective than managing multiple vendors
The implications of having multiple vendors are:
 Better suited for large agencies with highly specific and strategic ICT functions
 Provides greater control over vendor performance
 Requires higher capacities in the department and higher coordination risk
 Allows for best of the breed solutions in each component
 Identify opportunities for bundling outsourced components: One or Multiple outsourcing
vendors
12.4. Planning the Procurement

Based on the Procurement context, any of the following procurement modes may be employed:
 Two stage competitive process: Expression of Interest, followed by Request for
Proposal open to bidders qualified from EoI process
 Single stage competitive process: Request for Proposal open to all bidders fulfilling
the qualifying criteria
 Request for Quotes: Used for standardized requirements, in which price is the only
deciding factor
 Procurement from Rate Contracts: For items with standard specification, for which
Rates have already been negotiated in the form of a Rate Contract by a nodal agency
and economies of scale can be obtained
 Single sourcing / Nomination: In cases where the required Solution / Product is
available from only one vendor and there are no suitable alternatives (strong justification
required)
Two stage processes are most appropriate for systems with one or more of the below factors:
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 Complex Business Applications, in which requirements are not clear yet

 Systems in which finalization of requirements will need industry inputs
 Extensive Software development
 Complex technologies (e.g. large scale data processing equipment)
In stage one of the two stage process, client’s high level understanding of the business
requirement presented in the EoI document. The EoI solicits response from bidders indicating
their interest, and also suggestions from the bidder to refine the requirements. Valid suggestions
from this stage are used for refining the requirements in the second stage (RFP stage).
Single stage processes are used in cases where Standard Technical products / service
specifications (e.g. packaged software like Accounting, HRMS etc) are procured. In such cases,
requirements can be specified to great degree of accuracy and bidders have no major design
discretion. Also, market offerings are standardized and are comparable.
12.5. Request for Proposals

A Request for Proposal (RFP) is an invitation for suppliers, often through a bidding process, to
submit a proposal on a specific commodity or service. The RFP process brings structure to the
procurement decision and allows the risks and benefits to be identified clearly upfront.
The RFP will have to specify in great detail, the following requirements of the Buyer:
 Technical and Functional Requirements
 Bid Process and Commercial Specifications
 Contractual and Legal Specifications (including Master Services Agreement)
The RFP is usually structured in 3 Volumes with one Volume for each one of the above
requirements.
Illustrative contents of Volume I of the RFP are the following:
 Introduction & Detailed Background of the Project
 Project Vision, Mission and Objectives
 Services Definition
 Detailed Scope of Work for the Vendor
 Functional Architecture & Requirements
 Technical Architecture & Requirements (including Security Requirements)
 People Architecture
 Other Requirements (e.g. Data Migration, Digitization etc)
 Timelines for implementation of the Project
 Project Deliverables
Volume II of the RFP presents the Bid Process and Commercial specifications. The contents of
Volume II include (illustrative):
 Bidding Terms and Conditions (Guidelines for preparing proposal)
 Pre-qualification Criteria
 Technical Evaluation Criteria
 Bid Opening and Evaluation Process
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 Evaluation of Commercial Bids

 Negotiations, Contract Finalization and Award
 Formats for providing bid response
o Pre-qualification
o Technical and
o Commercial
This Volume provides the criteria for evaluating the bidders. In a 3 stage evaluation, the pre-
qualification stage is used to ensure bids from those bidders who have the necessary technical
and financial capabilities are evaluated. For this, the number of years the company is in
operation, financial capability (turnover, profit etc), and past credentials are evaluated.
The Technical Bid is evaluated against pre-defined criteria. The following criteria are used to
evaluate technical bids (illustrative):
 Technical Solution proposed by the vendor
o Proposed solution and its compliance to functional requirements
o IT Infrastructure and Hardware Design
o Security Architecture
 Approach & Methodology
o Project Management, Risk Management & Quality Management approach
 Past Credentials
o Specific experience of projects similar to the current project
o Broad experience in related domains
 Proposed Personnel
o Quality of staff proposed for key roles
o Quality of manpower available with the company
The final selection of the successful bidder may be through a number of selection methods.
Based on the department’s requirements, any of the following methods may be chosen:
 Quality and Cost Based Selection (QCBS)
 Quality Based Selection (QBS)
 Least-Cost Selection (L1)
 Fixed Budget Selection (FBS)
 Consultants’ Qualifications Selection
QCBS takes into account both the quality of the technical proposal and the cost of the services to
be provided. It provides a reasonable tradeoff between quality and cost, with Technical proposals
are given weight of 60-90%, with minimum cut-off at 60-75%. The Technical proposals are
marked in a scale of 0-100, while the commercial bids score are normalized to 100 with the
lowest bidder scoring 100, other bidders will be scored proportionately.
Quality-based selection (QBS) is a method based on evaluating only the quality of the technical
proposals and the subsequent negotiation of the financial proposal and the contract with the
consultant who submitted the highest ranked technical proposal. QBS is appropriate when:
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 assignments are complex or highly specialized making it difficult to define precise Terms
of Reference and the requires input from the consultants
 assignments where the downstream impact is so large that the quality of the services is
of overriding importance for the outcome of the project
 assignments that can be carried out in substantially different ways such that financial
proposals maybe difficult to compare
Least Cost Selection (LCS) is only appropriate for selecting consultants for very small assignments
where well-established practices and standards exist. In LCS, a minimum quality mark is set for
Technical score and selection of the lowest financial proposal from the companies that are above
the cutoff. The process followed in LCS is given below:
 Technical proposals will be opened first and evaluated.
 Bidders securing less than the minimum qualifying mark will be rejected, and the
financial proposals of the rest will be opened and compared
 The firm with the lowest price shall then be selected and invited to negotiate and finalize
the contract.
12.6. Some Considerations for Commercial Bid Formats

The formats for commercial bids should be such that, all bidders should be on a level playing
field – with knowledge of all cost components in the project.
In case of bought out mode of operation:
 Overall commercial quote to be obtained under logical heads (Software development
cost, Deployment hardware cost, AMC cost etc)
 Component level cost to be obtained under each major head
In case of PPP/ transaction fee based model:
 Bidder to be provided with all possible cost components and their quantity required over
the contract period
 Bidder to be provided historical data and trends to project the expected transactions
during contract period
 Individual cost components to be sought, in case of items under re-imbursement (e.g.
hardware, consumables etc)
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13. Contract Management Aspects
13.1. Importance of Contracts in e-Governance Projects

The reason for failure of many e-Governance projects can be traced back to lacunae in Contract
development, which leads to:
 Losing control over the supplier/ vendor who is managing the project
 Appropriate skills and resources to the management of their contracts are not allocated
 Despite the critical nature of the contracts, it do not address contingency plans and risk
management with clarity
 Service levels for the supplier / vendor are not addressed properly
 Inadequate key performance indicators to measure and drive the performance of supplier
 Business never remains constant and so does a contract. Reviews on the contract are not
done regularly
A Contract may be defined as ““An agreement concerning promises made between two or more
parties with the intention of creating certain legal rights and obligations upon the parties to that
agreement which shall be enforceable in a court of law.” Contract Management is the final stage
of Procurement cycle. The Contract includes all administrative activities associated with
administering a contract after it is executed, including a review of the completed contract.
The level of contract may vary from simple to complex contract. The degree of effort put into
contract management should commensurate with the value, risk and complexity of the
contract. In many e-Governance projects, the contract documents are prepared post award of
contract to a vendor leading to:
 Lack of clarity on specific terms and conditions of the contract during bidding processes –
bids prepared based on assumptions
 Dispute / disagreement on terms and conditions of the contract between selected vendor
and government (as these terms are known to vendor / government post award of
contract)
 Significant time consumed in finalizing / agreeing on the terms – delaying the project and
in some cases award of contract to a new vendor….
To avoid such issues, the best practice is to prepare a Draft Master Service Agreement and
provide it to bidders as part of the bidding document (Volume III).
13.2. Key Components of e-Governance Contracts

Based on the type of project, there can be templates prepared for Contracts, which addresses
most of the Contract considerations. In general, the Contract contents can be divided into the
following (illustrative):
 Project Specific Information: Contract contents specific to the project
 General Conditions of the Contract: Contract clauses which are more or less common
across all projects of the same type
 Special Conditions of the Contract: Any specific changes introduced to the General
Conditions, based on specific project requirements
 Appendices
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The project specific information will have to be drafted for each project. The components that
make up the project specific information include (illustrative):
 Scope of services / work for the vendor
 Deliverables
 Project Locations
 Project timelines/project schedule
 Project Duration
 Acceptance criteria for the deliverables
 Payment schedule
 Obligations / Responsibilities of the Department
 Service Levels / Performance Indicators and Service Level Agreement
 Penalties /Incentive measures (if any)
 Scope change management approach etc
The contract will inter-alia include the RFP (all Volumes) and all its Annexures and the Technical
and Commercial proposals of the bidder,
The General Conditions / Common Terms of Contracts include:
 Definitions of Terms used in the Contract
 Conditions precedent to contract signing
 Applicable Law governing the Contract
 Currency of the contract
 Language of the contract and administration
 Authorized representatives of the department and vendor
 Conditions on Taxes and Duties applicable for the contract, change in tax and duties and
impact to project cost
 Approach for modifications or variations to the contract
 Breach, Rectification and Termination
 Protections and Limitations
 Intellectual Property Rights
 Force majeure
 Conditions for suspension and/or termination of contract
 Liabilities of parties
 Dispute resolution approach
 Exit management
 Arbitration and courts for dispute resolution
These terms remain more or less constant in the same project category, and hence can be
provided in a template form. This allows for elimination of human errors, and adoption of best
practices in Contracts.
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13.3. Common Terms of Contract

Some of the common clauses in contracts are discussed in this section.
Breach, Rectification and Termination clauses
This clause specifies the terms relating to termination of the Agreement by either party, in the
event of material breach of obligations by the other party. The components of these clause
include:
 Process of termination:
o Notice provided to the other party, detailing the material breach
o Within the period given for response to the notice, the breach should be set
right, failing which termination proceedings will start
 Reasons for Termination:
o Material breaches (default in providing services as per the Agreement, delay of a
period unacceptable to the client etc)
o Change of control in SP (merger, amalgamation etc)
o Apprehension of Bankruptcy of the Service Provider
Upon termination of contract, all related Agreements including SLAs will terminate and Exit
Management clauses as defined in the Agreement will start
Protections and Limitations
The Protections and Limitations section provides the protection available to the Department and
Service Provider, in various scenarios and provides the limitations of liability.
The clauses which are included in the Protections and Limitations section include:
 Warranties: assurance or guarantee by a seller promising to indemnify the buyer if the
warranted fact proves to be untrue. Warranties may be express, implied or disclaiming
warranty. In case of components manufactured by third party, the SP confirms the
authority to enforce the warranties on behalf of the client to the third party
 Third Party Claims: protects the department against damages to third parties arising out
of reasons attributable to Service Provider
 Limitation of Liability: is a concept whereby a Service Provider’s financial liability in case
of losses or damages is limited to a fixed sum, most commonly the aggregate amount
received by the SP for delivery of services under the contract
 Force Majeure: clause in contracts essentially frees both contracting parties from liability
or obligation when an extraordinary event or circumstance (force majeure) occurs. Force
majeure events include acts of God like flood, drought, lightning, fire etc or act of
government or other competent authority like war, terrorist attacks, riots etc
 Data Protection: Clauses to ensure that the in the course of compiling, processing and
storing proprietary project data, the SP adheres to the applicable Data Protection Laws
and requirements of the project
 Audit, Access and Reporting: clause mandates the SP to provide access to all information
which is in the possession or control of the SP, which relates to the provision of the
Services as set out in the Audit, Access and Reporting Schedule and is reasonably
required to comply with the terms of the Audit, Access and Reporting Schedule.
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Insurance and Taxes

The Contract should address the following insurance related issues:
 The type and amount of insurance coverage to be maintained by each of the parties, and
party responsible for the cost of the coverage
 Commercial general liability insurance
 Insurance on software (OEM), Hardware
 Insurance for man power deployed
 Protection against any claims, suits, actions, costs, damages or expenses arising from the
negligence or intentional acts or omissions of the other party
The Tax related clauses should address:
 Payments as specified in payment terms will be inclusive of all statutory levies, duties,
taxes and other charges whenever levied / applicable
 The SP shall bear all taxes arising out of payments received under the contract
Contract Payments
The clauses governing payments made to the Service Provider are included in the Payment
Terms Schedule. The Schedule should address:
 Total payment made under the contract and mode of payment (lump sum for project
components based on milestone / man month rates / monthly transaction charges / unit
prices etc)
 Prices quoted by the bidder in strong and stable currency and break down of the quoted
prices
 Payment milestones and schedule
 Cost components to be covered by the SP in return of Contract Payment and Cost
components covered by Department (e.g. Third Party Audit)
 Lead times for price changes
 How incidental costs arising in the project will be handled (e.g. Change Controls)
Dispute Resolution Mechanisms
Disputes arise due to the disagreements between the department and the vendor, in cases where
no material breach has occurred (e.g. Quality of deliverables, any claim arising out of the
Agreement etc). Disputes are addressed in accordance to the provisions of the Disputes and
Amendments clause in the Contract.
The first level of dispute resolution is the Dispute Resolution Board (usually the Project
Management Committee), consisting of representatives from the department and the Vendor.
The decision of the PMC on the dispute shall be given within a specific number of days, as
mentioned in the Contract.
13.4. Project Type Specific Aspects of Contracts

Different types of projects have different priority areas. The Contract clauses for a government
owned bought out software development project may not be relevant in a PPP based service
delivery project. The Contract clauses need to tailored based on specific project requirements,
based on the type of project.
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The Contract considerations for the following project types are explored in the subsequent
sections:
 Software Development project
 IT Infrastructure projects
 Service Delivery projects
 Public Private Partnership
Many e-Governance projects may have a combination of more than one of the above types and
contract clauses shall be suitably tailored.
13.5. Contract Aspects of Software Development Projects

The major considerations for a Software Development project are listed below:
Source Code Ownership and Intellectual Property Rights:
“Source Code” is the term for individual modules, class layers, images, and pieces of computer
programming that are compiled together to make up your software system. Ownership of Source
Code is an ethical and legal issue. “Bespoke Software” means the software designed, developed,
tested and deployed by the SP for the purposes of rendering the Services as part of the project,
including customization components to other third party software.
As per the Indian Copyright Act, 1957, the Copyright of the Software developed by a third party
rests with the third party, unless obtained through a written deed of assignment. Accordingly,
Software Development project should have a clause, assigning exclusive Intellectual Property
Rights to the department:
 IPR to all the Bespoke Software developed , forms and the compilations of the project
 IPR to any logo, trademark, trade name, service mark or similar designations
 Exclusive rights to all project proprietary data
 For third party products for which the SP had IPR before the contract, IPR will continue
to vest with the SP. But the department will have exclusive IPR to the project specific
customisations on the product (e.g. Bolt-on built on top of an ERP product, developed
specifically for the department)
Change Control Management:
In any Software development project, it is inevitable that changes will be required, from the
original specifications. For a project of any complexity, the software will rarely be implemented as
originally specified. “Change Control” is the mechanism for parties to agree scope and cost
implications of a particular change (whether amendment to the MSA / Service Level Agreements
or service change).
Some of the reasons which result in Change Control being necessitated:
 Changes in processes / addition of a new process
 Scope expanded to include additional functionalities
 New services introduced by department
The change control procedure should be detailed in the contract and should set out the steps of
suggesting, documenting, pricing and implementing variations. The prices for change control
should be derived from the unit prices in bid, as much as possible.
Exit Management:
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This clause sets out the provisions which will apply on expiry or termination of the “Contract
Agreement”, the “Project Implementation, Operation and Management SLA (Service Level
Agreement)” and “SOW (Scope of Work)”. Exit Management ensures smooth transition at
contract expiry, to a new Operations & Management vendor (or in some cases, internal IT team
of department).
The Exit Management Schedule details the following:
 Cooperation and provision of information by the SP
 Handing over confidential information and data of the project to the department
 Transfer of project assets
 Transfer of Certain Agreements
 Transfer Costs on transfer of project assets to the department
 General Obligations of the SP
 Exit Management Plan
If exit management is not properly planned, high termination costs might arise. These costs may
be due to:
 Intellectual Property Rights not transferred to the department
 Assistance from incumbent vendor to transition to third party not provisioned in the
Contract
 No provisions in the Contract to calculate residual value of equipment and other assets
 Transfer of Assets or any remaining payables (e.g. lease payments)
All these can be eliminated by having a well designed exit management clause in the Contract.
Specific clauses should also be put in place in the contract to ensure knowledge transfer to the
new vendor on exit.
Acceptance Testing, Audit & Certification of Projects
The primary goal of Acceptance Testing, Audit & Certification is to ensure that the proposed
system meets requirements, standards, and specifications as required by the client and as
needed to achieve the desired outcomes. The contract clause should clearly specify the scope of
acceptance testing, the testing schedule, evaluation criteria and the threshold limit for service
levels.
A Third party audit may be carried out to ensure compliance to the requirements set out by the
department:
 Concurrent audit – Audit carried out in parallel with design, development and
implementation to certify deliverables at each stage
 Certification audit – Audit carried out once the Software is fully developed and ready for
deployment
The scope of audit usually involves Functional Requirements compliance, Interoperability and
adherence to standards, Meeting of Service Levels, Controls review and Security Audit.
Other considerations for Software development contracts:
 Documentation: Contract to ensure that project documentation is updated by SP at
specified intervals and latest documentation to be maintained with the department
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 AMC for system software: In case of third party system software (Database Servers,
Operating Systems), the SP should have AMC arrangements with the OEM for the
contract period.
 Licensing Policies and Upgrades: The Licenses to the System Software and other
licensed products should be obtained in the name of the department. Any upgrades
updating of patches / service packs / fixes from product vendors should be provisioned to
be provided free of cost by the SP
 Post Implementation Support: The contract should have special mention of the
clause for duration of support from the service provider/ OEM for the implemented IT
solution. This should include time duration for which the support will be required, type of
support required and support required for complete solution/ particular modules.
13.6. Contract Aspects of IT Infrastructure Projects

Warranty Terms for IT Infrastructure
Warranty ensures sustainability and assurance or guarantee by a service provider/ OEM to the
client. The Warranty clause should detail the following:
 Warranty period (subject to the warranty period provided by the OEM)
 Date of commencement and commissioning
 Type of warranty (Express / Implied / Disclaiming)
 Warranty coverage
 Cost arrangements
The contract clause should clearly specify the kind of arrangements that the service provider
should have with the product supplier / manufacturer (Tripartite / Back to back arrangement).
Audit & Certification of IT Infrastructure
The purpose of the audit is to ensure IT infrastructure deployed is as per the specifications
provided in the Request for Proposal. The other aspects of audit include:
 To audit Quality as per ISO 9126
 Reliability
 Availability
 Efficiency/ Performance
 Usability
 To audit Security compliance as per BS 7799 / ISO 17799
Exit Management Clauses
Exit Management is applicable when the O&M contract ends and the IT Infrastructure is handed
over to the department. The Exit Management clauses should take into account the following
considerations:
 Transfer of Assets
o Project assets including Hardware, Software, Documentation and any other
infrastructure to be renewed and cured of any defects and handed over to the
department
o Basis of calculation of depreciated value of project assets (IT Infrastructure) to
be specified in the Exit Management clause
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o Applicable transfer cost and stamp duty on transfer of project assets to be borne
by the SP (except in case of termination due to department’s default)
 Inventory / Stock management and transfer
 Condition of assets
 Transfer of project related agreements
o Shifting of assignments, transfers, licenses and sub-licenses related to any
equipment lease, maintenance or service provision agreement between SP and
any third party to department / new SP appointed by the department
 Documentation relating to IT infrastructure supply and installation
 Terms of payment / penalties, during exit
 Legal terms for exit
 Calculation of true value of assets (basis of calculation of depreciation)
Other Considerations for IT Infrastructure Contracts
Other considerations specific to IT Infrastructure projects include:
 Scope of Consumables: Contract to specify the scope of supply and usage of
consumables.
 End of Life: Clauses to ensure that the IT Infrastructure components are not in the end
of their product Lifecycle and support is assured during contract period
 Documentation: Ensuring that up to date documentation is available with the
department
 Insurance: Cost of insurance for components to be borne by SP
 Spares and Replacements SLA: SLA clauses to address quick delivery of spares and
fixing of defects in the IT Infrastructure
 Hours of Support: Working hours for the support staff for IT Infrastructure
maintenance
13.7. Contract Aspects of PPP and Service Delivery Projects

The following aspects should be covered in PPP and Service Delivery projects:
 Transfer of Assets: Contract to provide clarity on ownership and transfer of assets
created for the project (service delivery centers, related infrastructure etc)
 Usage of government facilities for non government transactions: Contract
should specify the following terms:
o Contract to clarify whether any non-government services can be delivered
through the service delivery channels (for increasing project viability e.g.
payment of mobile bills for private operators through CSCs)
o If yes, approach for addition/deletion of such services
o Revenue sharing (if needed)
o Avoiding conflict of priority between government and private services
 Funds management:
o Remittance and accounting procedures for collection of payments and taxes
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o Tim lines of remittance

o Payment of transaction fees (deduction at source by vendor or payment based
on quality of services??
 Hours of operations: Working hours for service centers or call centres, support needed
for online service delivery channels..
 Liability and responsibility of Service Provider in case of fraudulent
transactions:
o Liability to be with the SP in cases of claims / damages against the department in
case of fraudulent transactions
o SP to arrange for insurance coverage, at its expense, for cases of third party
claims
 Revenue Sharing Model:
o How will revenues from the project be shared between the Government and the
Service Provider?
o What are the safeguards in place to prevent excess payout from government, in
case transactions are much higher than projected numbers (transaction fee
based model with cap, sliding scale etc)
o What safeguards are the vendor provided in cases of projected transactions not
materializing (upfront payment for certain components e.g. IT Infrastructure)
 Addition / Deletion of new Services / Service Delivery Channel:
o In case of addition / deletion of new Services / Service Delivery Channels, the
modality of revenue sharing, renegotiation of transaction fee for other services
etc should be addressed
o Interests of department and the SP to be taken into account in designing the
modalities (deletion may result in lower payout to SP, addition may result in
higher payout)
13.8. SLA and Service Level Management

Service Level Agreements are an integral part of any e-Governance Contract. In any e-
Governance Project, Government is essentially buying services, and not hardware, software &
networks. Service Level Agreement (SLA) framework defines the minimum levels of service to be
maintained by the Service Provider.
Some of the definitions related to Service Level Management are given below:
 Service: A Service is an outcome of a request and it provides an economic, social or
personal benefit or right to the requestor or results in efficiency gains to an organization.
 Service Level: A Service Level defines the quality and quantity of service, in a measurable
and objective way.
 Service Level Objective (SLO): is the set of purposes or objectives sought to be achieved
through defining and prescribing the Service Levels for an initiative or organization.
 Service Level Agreement (SLA): is an agreement between the Service Provider and the
Service Seeker that defines the Service Levels, the terms and conditions for enforcing the
Service Levels and the remedies in case the Service Levels are not fulfilled.
 Service Level Management (SLM): is an institutional arrangement that ensures effective
implementation of the Service Levels and enforcement of the SLA
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In government scenario, there are a lot of challenges in managing and monitoring SLA terms.
Accordingly, certain design criteria should be kept in mind while designing SLAs. SLAs should be:
 Be simple to apply in a field situation
 Cover ALL the services envisaged in the Project.
 Lay emphasis on different services in proportion to their relative values to the
stakeholders.
 Be measurable through automated tools.
 Be Precise and Unambiguous.
 Be equitable as between the Service Provider and the Service Seeker.
 Be cost-effective to implement.
 Be legally enforceable.
 Provide scope for evolution of SLA into a more mature state
The SLA Lifecycle is shown below:
Business Objectives are defined based on – Vision and Mission of the Organization, Business
Drivers and Desired Business Outcomes. Services are listed down based on the business
objectives. For each service, Service Level Objectives are defined. SLO is the value that the
management intends to give to various sets of stakeholders, and the value it intends to derive
from the investment in Technology and Infrastructure. Illustrative SLO are given below:
Stakeholder Group Value Proposition (SLO)
External: Efficiency, Convenience, Reliability,

Responsiveness, Cost Effectiveness
Customers, Suppliers, Financiers
Internal: Usability, Accountability, Traceability,

Effectiveness
Employees, Management, Auditors
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Investment Area Value to be derived (SLO)
Technology & Process: Interoperability, Cost Effectiveness,

Transformation, Simplicity
Standards, Architecture, BPR
Infrastructure & People areas: Performance, Security, Availability,

Efficiency, Ownership
Data Centre, DR Site, Change Management
The next step is the definition of Services Levels for each service delivered by the department.
Service Levels defined for those services to be delivered by the Vendor forms the basis of the
Service Level Agreements. The components of the Service Level Definition are:
 Service Level Parameters: measurable attributes of the service, which will provide a
reliable and objective estimate of the quality and quantity of service
 Service Level Metrics: A set of norms prescribed against each service level parameters to
provide baseline performance expected from Vendor
 Service Level Measurement Method: Precise, reliable and consistent method by which the
service level parameter can be measured
 Service Level Enforcement Method: Method by which the service level agreement can be
enforced (deduction from payments, penalties etc)
The Service Level Parameters should fulfill the following criteria:
 Alignment with Service Level Objectives
 Coverage of complete range of services under the project
 Number of SLPs in each service area and their weightage should correspond to the
priority of the service area
 The number of SLPs should not be excessively large, affecting the ease of SLA
monitoring
 If required, SLPs may be defined for different phases of the project, based on the
priorities of each phase (e.g. System Development phase, Pilot phase, Operations and
Maintenance phase)
Service Level Metrics (range of values) are the performance metrics defined for each service level
parameter:
 Baseline: Acceptable level of service by the vendor
 Lower: Degraded level of service, for which vendor may be penalized
 Higher (optional): Higher level of service for which vendor may be incentivized
 Breach: Highly degraded level of service / material breach, which may invite termination
contract
Service level metrics should be realistic without compromising on Service Level Objectives.
SLA can be most effectively enforced by linking the payments to the Service Provider to the
degree of compliance with the SLA. The various methods of achieving this include:
 Deduction Method:
165
o Vendor gets 100% payments (monthly / quarterly / milestone) for full

compliance to the SLA
o For lower performance from SLA, specified percentage is deducted. Higher
performance may be incentivized by bonus payments
 Addition Method:
o A percentage of the payment (e.g. 40%) to the SP is made dependant on the
fulfillment of Service Level Matrix
o All SLPs are assigned credits for baseline, lower, higher and breach metric.
Credits will depend on the priority of the SLP
o Scores prescribed for baseline performance will add up to 100%
Automated SLA metric measurement and automated SLA calculation based on performance
should form part of the Functional Requirements, in case of Software development projects.
166
14. Software Development Lifecycle

This section provides an overview of software development Lifecycle, its key phases, activities
and outputs at each phase of the Lifecycle. This section also presents a brief overview of various
software development models followed in general.
14.1. Overview of Software Development Lifecycle and Models

The Software Lifecycle models the evolution of a product from opportunity identification to its
end-of-life. It is designed to build on one another, taking the outputs from the previous stage,
adding additional effort, and producing results that leverage the previous effort and are directly
traceable to the previous stages. This top-down approach is intended to result in a quality
product that satisfies the original intentions of the customer. It is a structured approach for
creation of IT systems/software systems and provides guidance on phases of systems
development, activities and outputs at each phase and addresses Quality Assurance requirements
at each phase of the Lifecycle and for each deliverable. It also covers standardization of
processes for systems development across organizations to improve software quality,
maintainability. Following provides typical route Lifecycle for software development and
implementation.
Software Development Life Cycle
Requirement System Development or

Testing Deployment Maintenance
specification Design coding
There are several software development models exists, but in general there are three Lifecycle
approaches. These are:
Development Approach Development Models

Sequential • Build and fix model
• Waterfall model
• Iterative waterfall model
Iterative • Iterative model
• Spiral model
• Incremental model
• Evolutionary model
• Component based development
• Rapid application development model
• Rational unified process
Recursive • Fountain model
• Recursive multi thread model
Table below presents a brief overview of some key software development models.
167
SDLC Model Key Features
The waterfall model • Also known as the linear sequential model, with its major
phases, milestones, and products.
• Can be successfully used when requirements are well
understood in the beginning and are not expected to change or
evolve over the life of the project
• The output from one phase serves as the input to the next
phase, with the project flowing from one step to the next in a
waterfall fashion
• Highly structured development process and is the “traditional”
approach to software development
• Considered superior to the previously used “code and fix”
methods of software development, which lacked formal
analysis and design
Incremental Model • The incremental model is essentially a series of waterfall cycles

• The incremental model prioritizes requirements of the system
and then implements them in groups
• Each subsequent release of the system adds function to the
previous release, until all designed functionality has been
implemented
• Each development cycle acts as the maintenance phase for the
previous software release
• this model assumes that most requirements are known up
front
Structured Evolutionary • The evolutionary model, like the incremental model, develops a
Prototyping Model product in multiple cycles.
• Unlike the incremental model, which simply adds more
functionality with each cycle, this model produces a more
refined prototype system with each iteration.
• Developers build a prototype during the requirements phase
• Prototype is evaluated by end users
• Users give corrective feedback
• Developers further refine the prototype
• When the user is satisfied, the prototype code is brought up to
the standards needed for a final product
Rapid Application • Rapid Application Development uses minimal planning in favor

Development Model (RAD) of rapid prototyping.
• The "planning" of software developed using RAD is interleaved
with writing the software itself
• The structured techniques and prototyping are especially used
to define users' requirements and to design the final system.
• RAD approaches may entail compromises in functionality and
performance in exchange for enabling faster development and
facilitating application maintenance.
168
The following table provides for comparison of these software development models.
Requirement Waterfall Incremental Evolutionary
Requirements are known and stable.  
User needs are unclear/not well defined 
An early initial operational capability is

 
needed.
Early functionality is needed to refine

 
requirements for subsequent deliveries.
Significant risks need to be addressed.  
Must interface with other systems  
Need to integrate new technology. 
Software is large or complex   
Software is small or limited in functionality  
Software is highly interactive with user  
Software involves client/server function   
Follow initial cost and schedule estimates  
Detailed documentation necessary  
Minimize impact on current operations 
Full system must be implemented  
Reduce the number of people required  
Project management must be simpler  
System must be responsive to user needs  
Progress must be demonstrated early  
User feedback is needed  
Reduce the costs of fixes and corrections  
169
Following discusses the key activities performed at each phase of software development including
key inputs and outputs.
STAGE 1: Requirement Definition
Overview of Stage Key Activities Performed in the Stage
• Definition of the need to acquire a • Planning and Initiation;
system, software product or software
• Identification of objectives
service
• System study
• Definition of goals for the proposed
software development • Requirement analysis
• Refine each goal into a set of one or more
requirements
• These requirements define the major
functions of the intended application,
define operational data areas and
reference data areas, and define the initial
data entities.
Inputs Outputs
• Vision and objective • Requirements Document
• High-Level Requirements • Requirements Traceability Matrix
• Project Plan & Schedule
STAGE 2: System Design

• This phase is the first step in moving from • System analysis
problem domain to the solution domain
• System Functional Review
• The design stage takes as its initial input
• Development of Software Design Document
the requirements identified in the
approved requirements document.
• For each requirement, a set of one or
more design elements will be produced as
a result of interviews, workshops, and/ or
prototype efforts.
• Design elements describe the desired
software features in detail, and include:
• Functional hierarchy diagrams
• Screen layout diagrams,
• Business process diagrams,
• Pseudo code,
• Complete entity-relationship
diagram with a full data
dictionary.
170
• Design elements are intended to describe

the software in sufficient detail that skilled
programmers may develop the software
with minimal additional input.
• When the design document is finalized
and accepted, the Requirements
Traceability Matrix is updated to show
that each design element is formally
associated with a specific requirement.
Inputs Outputs
• Requirements Document • Design Document
• Updated Requirements Traceability Matrix
• Updated Project Plan & Schedule
STAGE 3: Development or coding

• The goal of the development phase is to • Development of System Architectural
translate the design of the system into Design
code in a given programming language
• System Requirements Analysis
• Takes design elements described in the
• Process Implementation
approved design document as input and
for each design element, a set of one or
more software artifacts will be produced.
• Software artifacts include but are not
limited to menus, dialogs, data
management forms, data reporting
formats, and specialized procedures and
functions
• The outputs of the development stage
include a fully functional set of software
that satisfies the requirements and design
elements previously documented
• Appropriate test cases will be developed
for each set of functionally related
software artifacts
• A test plan is developed that describes the
test cases to be used to validate the
correctness and completeness of the
software
• The RTM will be updated to show that
each developed artifact is linked to
specific design element, and that each
developed artifact has one or more
corresponding test case items.
171
Inputs Outputs
• Design Document • Software
• Implementation Map
• Test Plan
• Updated Requirements Traceability Matrix
• Updated Project Plan & Schedule
STAGE 4: Testing

• Testing is the major quality control • Software Qualification Testing
measure employed during software
• System Acceptance Testing
development. Its basic function is to
detect errors in the software. • Software Acceptance Support
• During requirement analysis and design, Types of Testing
the output is a document that is usually
• Black box testing
textual and non-executable. After the
implementation phase, computer • White box testing
programs are available that can be
• Unit testing
executed for testing phases.
• Integration testing
• Testing not only uncovers errors made
during coding, but also errors introduced • Functional testing
during the previous phases. Thus, the
• System testing
goal of testing is to uncover requirement,
design or coding errors in the programs. • Regression testing
• During the test stage, the software • Acceptance testing
artifacts, and test cases are migrated from
• Load and Stress testing
the development environment to a
separate test environment • Performance testing
• Successful execution of the test suite
confirms a robust and complete migration
capability.
• During this stage, reference data is
finalized for production use and
production. The final reference data (or
links to reference data source files) and
production user list are compiled into the
Production Initiation Plan.
• The outputs of the integration and test
stage include an integrated set of
software, an online help system, an
implementation map, a production
initiation plan
172
Inputs Outputs
• Software • Test results
• Implementation map • Gaps in the system
• Test plan
STAGE 5: Testing

• The software artifacts and initial • Process implementation;
production data are loaded onto the
• Operational testing;
production server.
• System operation;
• All test cases are run to verify the
correctness and completeness of the • User support.
software.
• Upon satisfactory verification of
production data and the test suite has
been executed with satisfactory results,
the customer formally accepts the delivery
of the software
Inputs Outputs
• Production initiation plan • Production Software
• Acceptance plan • Completed acceptance test
• Integrated plan • Customer acceptance memorandum
• Implementation map • Archived software artifacts
• Archived project plan and schedule
STAGE 6: Maintenance

• Maintenance includes all the activity after • Problem and modification analysis
the installation of software that is
• Modification implementation
performed to keep the system operational
• Maintenance review /acceptance
• The maintenance phase involves making
changes to hardware, software, and • Migration
documentation to support its operational
effectiveness.
• It includes making changes to improve a
system’s performance, correct problems,
enhance security, or address user
requirements.
• To ensure modifications do not disrupt
operations or degrade a system’s
performance or security, organizations
173
should establish appropriate change

management standards and procedures.
Inputs Outputs
• Production Software • Post-Implementation Review
• Production initiation plan • Verify Operations Support materials
updated
• Test plan
• Implementation map
174
15. Project Management for e-Governance Projects
15.1. e-Governance Project Management

e-Governance is not simply a matter of giving government officials computers or automating old
practices. Neither the use of computers nor the automation of complex procedures can bring
about greater effectiveness in government or promote civic participation. Focusing solely on
technological solutions will not change the mentality of bureaucrats who view the citizen as
neither a customer of the government nor a participant in decision-making. Understood correctly,
e-Governance utilizes technology to accomplish reform by fostering transparency, eliminating
distance and other divides, and empowering people to participate in the political processes that
affect their lives. Governments have different strategies to build e-Governance. Some have
created comprehensive long-term plans. Others have opted to identify just a few key areas as
the focus of early projects. In all cases, however, the countries identified as most successful have
begun with smaller projects in phases on which to build a structure.
The success of an e-Governance project depends upon the development of the project in an
integrated and holistic manner. e-Governance should not be understood merely as the
procurement of hardware and other networking equipment. e-Governance is an integration of
various fields of management thus making it a management game rather than merely a
technology enabled project.
15.2. Need for Project Management

The e-Governance initiatives can be divided into three categories:
• Total failure: the initiative was never implemented or was implemented but immediately
abandoned.
• Partial failure: major goals for the initiative were not attained and/or there were significant
undesirable outcomes.
• Success: most stakeholder groups attained their major goals and did not experience
significant undesirable outcomes.
The following figure provides the success rate for the e-Government projects.
Trends on e-Government initiatives in developing/transitional countries*:
• 35% are total failures

• 50% are partial failures
• 15% are successes
* Source: Richard Heeks (2002) “ e-Governance for Development : Success and Failure rates of
e-Government in Developing/Transitional Countries”, IDPM, University of Manchester.
Critical factors resulting in failure of e-Governance projects are:
 Unrealistic or unarticulated project goals
 Inaccurate estimates of resources
 Badly defined system requirements
 Poor reporting of the project’s status
 Unmanaged risks
175
 Poor communication among customers, developers, and users

 Use of immature technology
 Inability to handle the project’s complexity
 Sloppy development practices
 Poor project management
 Stakeholder politics
 Commercial pressures
These failures come at a high price for the world's poorer countries, and six categories of
potential costs of e-Governance failure can be identified:
1. Direct Financial Costs. The money invested in equipment, consultants, new facilities, training
programs, etc.
2. Indirect Financial Costs. The money invested in the time and effort of public servants
involved.
3. Opportunity Costs. The better ways in which that money could have been spent, if it was not
spent on the e-Governance failure.
4. Political Costs. The loss of 'face' and loss of image for individuals, organizations and nations
involved in failure.
5. Beneficiary Costs. The loss of benefits that a successful e-Governance project would have
brought.
6. Future Costs. An e-Governance failure increases the barriers for future e-Governance
projects. It does this in two main ways. First, through loss of morale of stakeholders,
particularly e-Governance champions, who may 'defect' to the private sector or overseas.
Second, through the loss of credibility and loss of trust in e-Governance as an approach to
change. This increases risk aversion in some stakeholders; and provides support for others
with vested interests in the status quo.
Government has prioritized adoption of e-Governance as a key strategy to improve governance
particularly in providing significantly improved services to citizens and businesses. To achieve
these objectives, specific, measurable goals and time frames for each e-Governance project need
to be clearly identified at the outset.
15.3. Project Management for

e-Governance Projects
The Lifecycle of e-Governance projects is a
continuous circular chain of activities, divided
into four phases: Initiation, Planning and
Implementing, Operations and Monitoring.
Initiation
This is the phase in which Governments first
articulate their intention and vision which will
ultimately lead to Service Transformation. If
Service Transformation is the ultimate outcome
of the Lifecycle Process, Initiation will be the
very beginning. It is articulated in a vision
statement – a statement of intent of the
Government to embark on this journey. It is
perhaps the most important phase, as all other subsequent phases will depend largely on the
176
clarity and realism that is incorporated in the first phase. The boundaries of e-Governance
systems, the services to be provided, the resources necessary for planning and implementation,
operations and monitoring would be defined in this phase.
Planning and implementing
Typically, human and financial resources are two most important factors that contribute to
success. Applications must be deployed to provide the services specified, but also at the right
time, so that user take-up is optimized. Change management is another important issue in this
phase. Typically, again, several applications can be developed simultaneously ranging from the
simple to the extremely complex. Getting rid of silos and allowing sharing of information is one of
the goals of e-Governance, and coordination to ensure inter-operability is another concern. This
and issues of technology, user friendliness, availability, scalability, ownership and pricing of
services will dominate this phase.
Operations
The operations phase has two objectives. The first is reliable day-to-day operations and the
second is the progressive integration of systems to achieve service transformation.
Monitoring
Monitoring relates to optimization of services. e-Governance projects can take a long time to
permeate. Confidence of users to transact business through the impersonal machines does not
come easily. It needs strong day-to-day monitoring. Building up the services, capturing and
resolving customer feedback are prime concerns during the monitoring phase.
Risks
Within each phase of the lifecycle we have addressed the issues that were identified as the main
challenges and risks to e-Governance, during the work with the last report “Auditing
e-Governance”. By doing so, we also saw a need to identify different risks depending whether
they were related to a state and government level or a department level. The issues and risks are
therefore sorted accordingly within the four phases of the Life.
15.4. Project Management guidelines for e-Governance Projects

Government has prioritized adoption of e-Governance as a key strategy to improve governance
particularly in providing significantly improved services to citizens and businesses. To achieve
these objectives specific, measurable goals and time frames for each e-Governance project
need to be clearly identified at the outset. Competent professional advice needs to be obtained,
using consultants wherever necessary, to deal with the complex issues involved in the task as
well as to decide on the most appropriate strategy for implementation. Finally, a transparent
bid process needs to be adopted to identify and select the implementing agency. While these
general principles are well understood, the process to be adopted for this purpose is not.
These guidelines help improve understanding the issues related to implementation of
e-Governance projects. Implementation of e-Governance is a phased program involving the four
stages: The guidelines for each phase of the project are explained as follows.
Stage I: Conceptualization
Conceptualization is the most crucial phase of an e-Governance project. The purpose of this
phase is to attain clarity on the benefits and the outcomes of the proposed initiative. The
deliverables of this phase include-
 A well-articulated vision statement, a sharp mission statement and a set of specific objectives
of the proposed project / initiative.
 The list of customer-centric services.
177
 The outcomes or benefits to stakeholders like improvements in speed, convenience of access,

transparency, efficiency of services etc.
 The mix of delivery channels appropriate to deliver the services in a convenient and
affordable manner.
 An estimate of Transaction Cost
 A consultation with the stakeholders to derive / validate the list of services, outcomes,
delivery strategy and the transaction costs.
 A high-level functional architecture showing the transformed business processes.
 A high-level technology architecture that can translate the functional architecture into a
reality. A clear Business Model.
 A Project Proposal/ Document (Detailed Project Report or DPR) encompassing all the above
components.
Contents of a Typical DPR would include:
 Introduction
 Clearly laid out objectives
 Target Beneficiaries
 Existing e-Government services
 Newly proposed services
 Business Process Reengineering – BPR
 Technology Option adopted
 Functional Requirement Specifications (FRS)
 Project Management structure
 Detailed AS-IS Scenario
 Detailed TO-BE Scenario
 Change Management methodology
 Capacity Building
o Department e-Government group for change management / process change &
o For overall implementation of the e-Government Project
 Financials
o Means of Project Finance
o Cost estimates
o Evaluation of Options
o Phasing of Expenditure
o Options of Cost Sharing and Cost Recovery
o Models of PPP like BOO,BOT, BOOT to etc. to be considered
o Leveraging of existing core IT infrastructure (SWAN, CSC, SDC)
 Phased Time Frames
The DPR should also contain sections on:
 Government Support
178
o Legislative changes/legal amendments,

o Infrastructure etc.
 Sustainability
o Means of sustaining the project benefits
o Means of replicating the project success
 Impact Assessment
o Evaluation methodology of the Impact Assessment Study
o TPA
It is desirable to establish an Empowered Committee, headed by the Secretary of the Nodal
Department responsible for all major decisions connected with the project (like deciding on
project objectives, outlays, implementation strategy, scope for attracting private investment,
transaction costs, award of the project etc.), a Project Implementation Committee responsible for
all operational decisions connected with the project (like changes of procedure, forms, etc.,
bidding parameters, specific service levels, etc.) and to nominate a Mission Leader/ Project
Leader who would build a project team to drive the implementation and be responsible for
achieving mission goals and timelines.
179
16. Monitoring and Evaluation

e-Governance project should be aimed at achieving business benefits to the Government and
citizens. As discussed in the earlier sections, the first and foremost activity in undertaking an
e-Governance project is to establish a clear vision, objectives and benefits expected to be
delivered by the project to the target stakeholders. It is imperative for the organizations to
monitor and track achievement of stated objectives and benefits throughout the Lifecycle of the
project. Hence, definition of a Monitoring and Evaluation (M&E) framework for the project is a
crucial element in e-Governance project design and implementation.
16.1. Overview of Outputs and Outcomes

To understand Monitoring and Evaluation, it is essential to gain an understanding of difference
between outputs and outcomes. Following explains the same in simple terms.
Outputs of e-Governance project are the deliverables generated by the government, consultants,
implementation partners and associated stakeholders at various phases of an e-Governance
initiative. These outputs, for e.g., include e-Governance vision & strategy, reengineered business
processes, IT system, IT infrastructure, training etc. These outputs should be clearly stated in the
scope of the project and based on the responsibilities allocated to various stakeholders.
Outcomes refer to the desired result of an initiative undertaken to meet a need or solve a
particular problem. Outcomes, for e.g., may include areas such as reduction of passport delivery
time to 3 days, improvement in literacy rate by 15%, to minimize leprosy from 15% to 5% etc.
The outcomes relate to the business objectives and benefits defined for the project and are final
results supported by intermediate outcomes (benefits milestones). Outputs are defined to
measure programme performance and outcomes focus on business performance. Following table
summarises the difference between outputs and outcomes with few examples.
Goals Examples of performance indicators
Outputs  Comparisons of old and new business

 Reengineered processes processes
 New ICT systems  Technical reviews of IT infrastructure,
 Increased service coverage applications, and performance
 Variety of available services
 IT support capacity
 Service training
Outcomes  Financial and time savings in government
 Increased efficiency activities
 Increased transparency and  Public perceptions, such as user satisfaction and
accountability score cards
 Higher-quality public services  Financial and time savings for citizens
 Better access to services  Increased public service timeliness and
responsiveness
 Reduced errors
 Financial saving per transaction
180
Following table further illustrates output management versus outcome management.
Output Management Outcome Management
Focus Manage costs, inputs, schedule, Manage outcomes, benefits,

resources, deliverables business results, portfolio
Deliverables Gantt Charts, schedules, work plan, Outcomes maps, outcomes

costs, estimates, progress reports, registers, value cases, value
milestones, issues, earned value, assessments, value graph,
PERT charts, etc. governance reports or structures
Measures of On-time, on-budget, delivery of Initiative delivers on promised
Success specified change enabler (e.g., results, maximized business value of
system, process), risk management portfolio
Processes Project initiation, project monitoring, Initiative definition, value definition,
project close out, etc. portfolio selection, results attainment
Project / Is accountable to the business Facilitates the value case, ensures

Initiative sponsor for project deliverables that the initiatives benefits are
Is accountable to the Program achieved
Manager for project execution
Timeline From project planning to From program planning through
implementation implementation to results attainment
16.2. Overview of Monitoring and Evaluation

Monitoring & Evaluation refers to tracking the outputs and outcomes, respectively, as defined for
the project. Monitoring relates to tracking the project progress, outputs and deliverables as per
the defined programme/project plan whereas evaluation refers to assessment on achievement of
business objectives and benefits defined for the project. The table below provides overview and
difference between monitoring and evaluation.
Monitoring Evaluation
 Regular observation and recording of  is a selective exercise that attempts to

activities taking place in a project or systematically and objectively assess
program progress towards and the achievement of
an outcome
 Process of routinely gathering information
on all aspects of the project  An assessment of a planned, ongoing, or
 Involves giving feedback about the completed programme to determine its
relevance, efficiency, effectiveness, impact
progress of the project to the sponsor,
and sustainability
implementers and beneficiaries of the
project  The intent is to incorporate lessons learned
into the decision-making process
 Tracks inputs and outputs and compares
them to plan  Determines program effectiveness
 Identifies and addresses problems  Shows impact
 Ensures effective use of resources  Strengthens financial responses and
 Ensures quality and learning to improve accountability
activities and services  Promotes a learning culture focused on
181
 Strengthens accountability service improvement
 Promotes replication of successful
interventions
To make resource decisions
 Decision-making on best alternatives
 Support of public sector reform /
innovation
Following table summarises outputs, outcomes, monitoring and evaluation for a project.
Level Description Frequency

Inputs Resources that are put into the project. Lead to the Continuous
achievement of the outputs
Outputs Activities or services that the project is providing. Quarterly

Outputs lead to outcomes
Outcomes Changes in behaviors or skills as a result of the short to medium

implemented project. Outcomes are anticipated to term
lead to impacts
Impacts Measurable changes in project status, long term
Impact results are effects of the intervention.
16.3. Understanding Evaluation Types

There are two types of evaluation in general i.e outcome evaluation and impact
evaluation/assessment. Table below summarises outcome and impact assessment followed by
few examples.
Type Purpose
Outcome 1. Examines specific program outcomes and accomplishments.

2. What changes were observed, what does it mean, and if
changes are a result of the interventions?
Impact 1. Gauges the program’s overall impact and effectiveness.

2. Aims to strengthen design and replication of effective
programs and strategies
182
Some illustrative examples:

Literacy Improvement Programme:
Direction.. Inputs Outputs Outcomes Impact
• Policy • Funding • Schools • Increase in • Improved reach to
• Objectives • Experts • E-Learning enrolment into education
• Goals • Infrastructure • Facilities schools • Increased literacy
• Teachers • Improved pass % levels
of students
Polio eradication programme

• Policy • Funding • Health camps • Reduction in • Healthy citizens and
• Objectives • Medicines • Health Polio % to <1 health nation
• Goals • Resources campaigns
e-Governance Project in Business Registration

• Policy • Funding • Reengineered • 80% of services • Improved investment
• Objectives • Experts processes provided online climate
• Strategy • Consultants • IT Systems • 60% of • Increased economic
• IT • Computers for transactions growth….
Specialists.. employees performed
• Trained through self
employees services
• Reduction time
for company
registration from
60 days to 7
days
e-Governance Project in Municipal corporations

• Policy • Funding • Reengineered • Improved tax • Better civic
• Objectives • Experts processes compliance infrastructure and
• Strategy • Consultants • IT Systems monitoring amenities
• IT • Computers for • Increase in • Improved civic
Specialists.. employees revenue by 30% conditions in the
• Trained • Increase in corporation…
employees timely payment
of tax by 15%
183
16.4. Approach for Development of M & E Framework

The diagram below provides an overview of approach for development of Monitoring and
Evaluation framework for e-Governance projects.
Understand e-Governance vision, objectives and goals;

Gather inputs from e-Gov Vision and
Strategy
Understand expected outputs and outcomes for the project
Define relevant indicators/related measures for monitoring and Derive indicators from objectives/
evaluation; goals/benefits envisaged
Gather data on current levels of

Collect baseline data for the identified indicators/measures performance during As-Is
assessment
Identify and set benchmarks/standards; Finalise the target performance

levels during to-be definition
Identify the data sources which will

Determine data collection strategy and data sources; provide inputs on performance
against target levels
Collect and analyze data; and Gather data
Assess the performance against

Use data for analysis of outcomes/benefits and for corrective target objectives and performance
measures… levels…
184
17. References
 DIT Website (www.mit.gov.in)

 Annual Report (DIT ), 2009-2010
 11th Report of the 2nd Administrative Reforms Committee Report, 2008
 IIPA Training Book for Training State Officials on NeGP
 NISG repository
 United Nations e-Governance Report, 2008
 1st Impact Assessment Report of NeGP Projects by IIMA, 2008
 India Portal – www.india.gov.in
 Excerpts of NeGD Approval Note
 Excerpts of NeGP Approval Note
 www.unpan.org
 www.nsdg.gov.in
 www.worldbank.org
 www.egovknowledge-exchange.org
 Reading supplement for Training Program on e-Governance for Government of NCT of Delhi
185
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e-Governance Project Lifecycle

e-Governance Project Lifecycle

The objective of this document is to provide an overview or preliminary understanding, only,

The content expressed herein is subject to change without notice.

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ADKAR Awareness, Desire, Knowledge, Ability, Reinforcement

BCA Business Case Analysis

BOO Build Own Operate

BPR Business Process Re-engineering

CCTNS Crime & Criminal Tracking Network

CSC Citizen Service Center

DAR&PG Department of Administrative Reforms & Public Grievances

DFSS Definition for Six Sigma

DMIC Define, Measure, Analyze, Improve, Control

ECV Estimated Contract Value

ERP Enterprise Resource Planning

FBS Fixed Budget Selection

G2C Government to Citizen

G2E Government to Employee

G2G Government to Government

GPR Government Process Re-engineering

GPS Global Positioning System

ICR Intelligent Character Recognition

ILIS Integrated Land Information System

IPR Intellectual Property Right

IRR Internal Rate of Return

ISDN Integrated Services Digital Network

ISS Information System Security

LAN Local Area Network

LCS Least Cost Selection

M&E Monitoring & Evaluation

MIS Management Information System

MMP Mission Mode Project

MSA Measurement System Analysis

NICNET National Informatics Center Network

NISG National Institute for Smart Government

NPV Net Present Value

NSDG National Service Delivery Gateway

OMR Optical Mark Recognition

PDA Personal Digital Assistant

PeMT Project e-Governance Mission Team

PMC Project Management Committee

PMU Project Management Unit

PPP Public Private Partnership

PSC Public Sector Comparator

QBS Quality Based Selection

RAO Rapid Application Development

RFP Request for Proposal

RFQ Request for Qualification

ROI Return on Investment

SAS Software As Service

SDA State Designated Agency

SDC State Data Center

SeMT State e-Governance Mission Team

SLA Service Level Agreement

SLM Service Level Management

SLO Service Level Objective

SMART Simple, Moral, Accountable, Responsive, Transparent

SPV Special Purpose Vehicle

SSDG State e-Governance Service Delivery Gateway

STOC Standards Testing Certification

TCV Tender Contract Value

UAT User Acceptance Testing